Current Mortgage Rates: The Role of the Fed in Determining Current Mortgage Rates

There are a multitude of factors that come into play when determining current mortgage rates. Many people believe that the Fed, or the Federal Reserve, directly controls mortgage rates, but this is not the case, at least not directly. The reason for this common misconception may stem from a misunderstanding of the Federal Funds rate. The Federal Funds rate is an interest rate which banks charge each other on overnight loans when a bank needs to borrow money to meet end-of-day reserve quota requirements. Read more [...]