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sladkih [1.3K]
2 years ago
10

The federal reserve can influence the interest rate on home morgages by

Social Studies
1 answer:
Lisa [10]2 years ago
5 0
Ripple Effect. Mortgage lenders set interest rates based on their expectations for future inflation and interest rates. The supply of and demand for mortgage-backed securities also influences the rates. 8 Thus, the Federal Reserve's actions have a ripple effect in terms of impacting mortgage rates.
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