How the Federal Reserve Affects Mortgage Rates

By
Mortgage and Lending with ChangeMyRate.com® A Mortgage Corporation NMLS #1326269

Just to dispatch with the technicalities, the Federal Reserve does not set mortgage rates, and the central bank’s decisions don’t drive mortgage rates as directly as they do other products, like savings accounts and CD rates.

But the Fed’s actions do indirectly influence the rates consumers pay on their fixed-rate home loans when they refinance or take out a new mortgage. The Fed at its September meeting indicated it plans to keep rates low at least until 2022, despite a brightening economic picture and a jump in inflation in recent months.

“The Fed is inching closer to tapering, the process of slowly – very slowly – dialing back their bond purchases,” says Greg McBride, CFA, Bankrate chief financial analyst. “The stock market has been a direct beneficiary of the Fed’s stimulative actions and the prospect of reducing that is sure to spark heightened market volatility.”

To learn more about how the federal reserve affects mortgage rates and home buying process, visit the SCOOP! Blog

Comments (2)

Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Hopefully the rates will stabilize in the next three months and we'll see what happens from there

Sep 23, 2021 11:55 PM
Jackie A. Graves

Hi Laura, thank you for your comment. Stay posted for future blogs and make it a great day. 😊

Sep 24, 2021 12:34 PM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Hi Jackie A. Graves Thank you for the kind words and I will be back periodically to check out all the good stuff

Sep 30, 2021 09:03 AM
Jackie A. Graves

Hi Laura, very much appreciated. Thank you 🙂

Sep 30, 2021 10:34 PM