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The Daily Capital
REAL ESTATE · Lesson 44

How a mortgage rate is actually set

Daily Desk · Editorial5 min read
Most people think the Fed sets mortgage rates. It doesn't. Your rate is really decided in the bond market — and partly by you.

“The Fed raised rates, so mortgages went up” — you hear it constantly, and it's only half true. Mortgage rates are set by something most people never think about: the bond market.

Educational, not financial advice.