Adjustable Rate Mortgage Vs. Federal Funds Rate



This page is created to monitor the 1 Year Adjustable Rate Mortgage Average Vs. Effective Federal Funds Rate.





The Fed Funds Rate (red chart) sets the short term rates, in particular the 1 Year Adjustable Mortgage Rates.








Whenever the Federal Reserve increases/decreases the lending rate between banks, the short term rates will follow suit.





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