The Federal Reserve doesn’t set mortgage rates outright. But its decisions in setting interest rates do play a role in the percentages lenders offer would-be homeowners. And even if the Fed keeps things unchanged, mortgage rates can still fluctuate.
So, overall, how do the Fed’s monetary-policy moves affect mortgages — and influence the cost of borrowing to buy that dream home? Here’s how it all works. (Continue reading...)
Image and article courtesy of Bankrate.com, Jeff Ostrowsky, Troy Segal