Skip to main content

How U.S. mortgage rates are determined

By Marcie Geffner -

Homeowners and home buyers are naturally interested in mortgage interest rates because the rate they pay for their home loan is one factor that determines their monthly housing payments and the total cost of owning their home over time.

While each lender, borrower, and loan type will have different individual rates, here’s what affects interest rates on a national level:

Federal Funds Rate
The Federal Reserve (the Fed), a semi-autonomous arm of the federal government, sets a special interest rate known as the federal funds rate, often called the “fed funds rate” for short.

Read on:

Contact Form


Email *

Message *