Does the Federal Funds Rate Affect Mortgage Rates?

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Does the Federal Funds Rate Affect Mortgage Rates?
The short answer: No.

This graph contrasts the movements of the weekly average Federal Funds rate against the movements of the weekly 10-year Treasury Constant Maturity and those of the average 30-year fixed rate mortgage and 5/1 Hybrid ARM. It covers the period from February 2007 through mid-January 2010.

Sources: Federal Reserve, HSH Associates.

For more about Fed Funds, mortgage and other loan rates, click here.

Fed Funds and Mortgage Rates

HSH grants permission to utilize this graph providing that the graph and its contents are not altered in any way.

Click here for a list of indexes for Adjustable Rate Mortgages.