Why Do Mortgage Rates Move When the Fed Keeps Interest Rates Stable?

Marketplace.org, Aug. 8, 2024–Henry Epp
For the past year, the interest rate set by the Federal Reserve — the federal funds rate — has stayed the same. At the same time, average rates for a 30-year fixed interest mortgage have bounced around from as high as nearly 7.8% last fall to as low as 6.6% in February, according to Freddie Mac.

So if the Fed’s rate is unchanged, why do mortgage rates keep moving around?
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