I am getting this very reasonable question a lot today as I always do in the run up or aftermath of a Fed meeting. The short answer is no, the Fed funds rate does not effect mortgage rates directly at all. Mortgage rates are actually set by Mortgage Backed Security (MBS) prices. MBS are bonds made out of mortgages issued by Fannie/Freddie (and others but the large majority is Fannie/Freddie) and bought by the world wide bond market. These bonds are traded 24/7 just like any other stock or bond and this movement is what gets passed through to set mortgage rates.
All bond prices including MBS, are influenced by overall interest rates that the fed funds rate certainly influence. But fed fund rate cut and/ or raise are usually anticipated by the bond market months in advance so any price influence it may have into mortgage rates have been priced in many days before the actual meeting. Now, if there is a surprise either way, then there can be some excitement for sure.
Here is an article that does a better job of explaining: No, the fed funds rate cut won't affect mortgage rates
All bond prices including MBS, are influenced by overall interest rates that the fed funds rate certainly influence. But fed fund rate cut and/ or raise are usually anticipated by the bond market months in advance so any price influence it may have into mortgage rates have been priced in many days before the actual meeting. Now, if there is a surprise either way, then there can be some excitement for sure.
Here is an article that does a better job of explaining: No, the fed funds rate cut won't affect mortgage rates
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