How the Federal Reserve Affects Mortgage Rates
Some or all of the mortgage lenders featured on our site are advertising partners of NerdWallet, but this does not influence our evaluations, lender star ratings or the order in which lenders are listed on the page. Our opinions are our own. Here is a list of our partners.
The Federal Reserve influences mortgage rates, but doesn't set them. On Nov. 7, 2024, the central bank reduced the federal funds rate by one-quarter of a percentage point to a range of 4.5% to 4.75%, a smaller cut than the one announced at the September meeting but a cut nonetheless. In the news release accompanying the announcement, the committee members noted that there's still progress to be made on employment and inflation.
Mortgage rates are influenced by many elements, including the inflation rate, the pace of job creation, and whether the economy is growing or shrinking. The Federal Reserve's monetary policy is a factor, too, and is set by the Federal Open Market Committee.
Mortgage loans from our partners
on New American Funding
New American Funding
on New American Funding
on Rocket Mortgage
Rocket Mortgage
on Rocket Mortgage
Mortgage loans from our partners
on New American Funding
New American Funding
on New American Funding
on Rocket Mortgage
Rocket Mortgage
on Rocket Mortgage