https://blog.cfcmtg.com/tags/mortgage-news/Recent content in Mortgage News on Coastal Funding BlogHugoen-usWed, 21 Oct 2026 06:45:00 -0500https://blog.cfcmtg.com/posts/what-moves-mortgage-rates/Wed, 21 Oct 2026 06:45:00 -0500https://blog.cfcmtg.com/posts/what-moves-mortgage-rates/<p><strong>Mortgage rates are driven mostly by the bond market, not directly by the Federal Reserve. Investors buy mortgage-backed securities, and the yields they demand rise or fall with inflation, economic news, and expectations about the Fed. That&rsquo;s why mortgage rates can move even on days when the Fed does nothing.</strong></p> <h2 id="key-takeaways">Key Takeaways</h2> <ul> <li>The <strong>Fed sets short-term rates</strong>, not mortgage rates.</li> <li>Mortgage rates follow <strong>mortgage-backed securities (MBS)</strong> and tend to move with the <strong>10-year Treasury yield</strong>.</li> <li><strong>Inflation data</strong> is one of the biggest rate movers.</li> <li>Freddie Mac&rsquo;s 30-year average was <strong>7.40%</strong> the week of October 15, 2026, up from <strong>6.27%</strong> a year earlier.</li> <li>The Fed <strong>raised rates on September 16, 2026</strong>, and meets again <strong>October 27-28</strong>.</li> </ul> <h2 id="does-the-federal-reserve-set-mortgage-rates">Does the Federal Reserve Set Mortgage Rates?</h2> <p>No. The Fed sets the <strong>federal funds rate</strong>, the rate banks charge each other for overnight loans. That rate affects things like credit cards and home equity lines of credit more directly.</p>