Federal Funds vs. Prime Rate & Mortgage rates (graph)
Click here to see a graph of Fed Funds rates.
Does the Federal Funds rate affect mortgage rates? Click here to find out.
As you can see here, the Federal Funds rate and the Prime Rate track along with each other very closely.
One-year ARMs are also affected by trends in short-term interest rates. As a lenders' cost of obtaining funds to lend declines, some of those reductions as passed to borrowers in the form of lower starting rates.
Long-term rates, such as 30-year fixed-rate mortgages, pay little attention to short-term rates, responding instead to economic growth and inflation pressures. They more closely follow other long-term rates, such as the yield of the ten-year Treasury Constant Maturity.
More help from HSH.com
Home price recovery index: Which metros have improved the most, least?Have home prices in your area fully recovered from the declines suffered during the Great Recession, or are they still struggling to make it back to the peaks they reached before the crisis?
What is HARP and do I qualify for a HARP loan?Over 800,000 households are still eligible to refinance under the federal HARP program. Are you one of them?
Mortgage Rates Radar 08/23/2016: Mortgage rates show little movementHSH.com releases its latest Weekly Mortgage Rates Radar showing another period of virtually no change in popular mortgage rates in the seven-day period ending August 23, as financial markets are quiet as the summer winds toward its unofficial close. The Weekly Mortgage Rates Radar reports the average rates and points offered by lenders for the two most popular types of mortgages, the conforming 30-year fixed-rate mortgage and the conforming 5/1 adjustable-rate mortgage (ARM).
Metro area definitionsMetro area definitions for the 27 metropolitan areas in "The salary you must earn to buy a home in 27 metros"
The salary you must earn to buy a home in 27 metrosHere’s how much salary you would need to earn in order to afford the median-priced home in your city.