Mortgage Glossary
Federal Reserve
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
The Federal Reserve is the U.S. central bank, and its monetary policy strongly influences the interest-rate environment in which mortgage rates move.
What Federal Reserve means
The Fed sets the federal funds rate and buys or sells securities, which shapes the broader rate landscape. Mortgage rates do not track the Fed directly but respond to its policy and inflation outlook through the bond market.
Florida example
When the Federal Reserve signaled it would hold rates steady amid cooling inflation, Florida mortgage rates eased slightly as bond yields fell.
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