If you're planning to buy a home, refinance your mortgage or simply wondering whether borrowing costs will come down, you'll likely hear a lot about the Federal Reserve. While the Fed doesn't set mortgage rates directly, its decisions can influence the broader interest rate environment and shape what lenders charge borrowers.
That's why investors, lenders and homebuyers closely watch each Federal Open Market Committee (FOMC) meeting. When policymakers discuss whether to raise, lower or hold interest rates, they're responding to economic conditions such as inflation, employment and consumer spending. Those decisions can ripple through the financial system and affect everything from savings accounts to credit cards and mortgages.
