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How The Fed Does NOT Control Mortgage Interest Rates
Manage episode 349869023 series 3217240
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The Fed raising the Fed Funds Rate does not affect mortgage interest rates.
I've spoken to home buyers, homeowners, and industry professionals... and there's a lot of confusion on this topic. Here, we look at some data to illustrate that the Fed Funds Rate does not affect mortgage rates. While they often move in a similar direction, it's because they are both reacting to the same thing... not because one controls the other.
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