What determines interest rates?

Answer Interest rates are constantly fluctuating based on a variety of factors. The government, private sector and your personal choices all influence how much the borrowing of money will cost you.The Fe... Read More »

Top Q&A For: What determines interest rates

What interest rate determines mortgage rates?

The rate at which mortgage backed securities (investments backed by real estate loans) are traded tends to determine mortgage rates. Those rates go up and down but typically trade at the same rate ... Read More »

Who determines the interest rates for banks?

There are a number of factors that play into an economy, successful or otherwise. One very important element is control of interest rates. Many, however, have little idea of how their banks actual... Read More »

Who determines interest rates for homes?

The Federal Reserve sets interest rates for money borrowed by the banks from other financial institutions. Based on the rate the bank gets when it borrows money, that rate will determine what inter... Read More »

What determines FHA loan rates?

FHA loans are loans that receive backing from the Federal Housing Administration. The FHA was founded during the Great Depression to help consumers purchase homes even though they could not afford ... Read More »