The Federal Reserve does not directly set mortgage interest rates, and reductions in the Fed's short-term policy rate do not necessarily cause mortgage rates to decline.
November 06, 2025
high
policy
Clarifies the relationship between central-bank policy rates and consumer mortgage rates.
Mortgage interest rates do not always move in lockstep with the Federal Reserve's policy rate and often reflect market expectations about future changes in monetary policy.
October 31, 2025
high
process
Longer-term interest rates incorporate expectations and risk premia, so they can move independently of the Fed's short-term target rate.