By David Parks · eXp Realty · The Apollo Group · 2 min read
No. The Federal Reserve sets a short-term policy rate, but mortgage rates are set by the market. They often move in the same direction as Fed policy, but not always, and not by the same amount.
The Fed sets a target range for the federal funds rate, which is what banks charge each other for overnight loans. This affects credit cards, savings, and some other short-term borrowing more directly.
Mortgages are long-term loans priced off bond market expectations for inflation and growth. Markets often move before the Fed acts, because they are trying to anticipate future decisions.
You may see mortgage rates change on days when the Fed does nothing, or move less than expected when the Fed does act. Headlines about the Fed can be a hint, but not a guarantee about what your rate will be.
Focus on what you can control: your credit, down payment, and shopping around. A lender can show you today’s rate options, and a rate lock can protect you once you are under contract.
This article is general information, not legal, tax, financial or inspection advice. Every home and situation is different, so confirm details with a licensed inspector, lender, attorney or tax professional.
David is a Greater Denver real estate advisor with eXp Realty and The Apollo Group (Colorado broker license FA100103211). He has closed more than $55 million in volume, earned eXp Icon status in 2025, and holds a 5.0 rating on Zillow from 27 verified reviews.
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