Lisa Wilson

NMLS # 1913985

941-408-3474

lwilson@bombaymortgage.com

Understanding the Difference Between Fed Rate and Mortgage Rate

Understanding the Difference Between Fed Rate and Mortgage Rate

As a mortgage broker, it's important to understand the difference between the Federal Reserve interest rate (Fed Rate) and mortgage rates. While the Fed Rate is set by the Federal Reserve and influences the overall economy, mortgage rates are determined by lenders and can fluctuate based on market conditions.

When the Fed Rate increases, it can lead to higher borrowing costs for consumers, including higher mortgage rates. Conversely, when the Fed Rate decreases, mortgage rates may also go down. However, mortgage rates are also influenced by factors such as inflation, housing market conditions, and lender policies.

It's important for potential homebuyers to stay informed about both the Fed Rate and mortgage rates, as they can impact the affordability of a home loan. Working with a knowledgeable mortgage broker like Bombay Mortgage, Inc. can help you navigate these complexities and find the best mortgage rate for your financial situation.