The Federal Reserve announced a rate cut at its policy meeting on Sept. 18. The federal funds rate was cut by 50 basis points, to a range of 4.75–5.0 percent. This was seen as a positive step for those hoping to buy a house.
However, the lower federal rate may not influence the current home mortgage rate that much. Several factors go into a mortgage rate, with only one being the federal rate.
Federal Reserve Sets Federal Funds Rate
The Federal Reserve is the central bank in the United States. It manages the supply of money and the cost of credit. Its stated goal is a prosperous economy via its dual mandate of price stability and maximum employment….