The Federal Reserve doesn't directly set your mortgage rate. So what actually does?
One of the biggest influences is the bond market, especially longer-term Treasury yields. Mortgage rates tend to move closely with longer-term interest rates, including the 10-year Treasury.
Another major factor is the mortgage-backed securities market. Investor demand and expectations about future interest rates can affect mortgage pricing.
Then you have the broader economy. Inflation, economic growth, and expectations about what the Federal Reserve may do next can all move longer-term interest rates.
And then there's you.
Your credit score, down payment, loan type, loan term, and whether you're paying discount points can all affect the rate a lender actually offers you.
So when you hear that the Fed raised or lowered rates, don't assume mortgage rates automatically moved by the same amount.
The Fed matters, but your mortgage rate is influenced by a much bigger market — plus your individual financial profile.
If you're thinking about buying in Orange County, reach out to me. I can help you with the real estate side while your lender helps you understand the financing options available to you.