How U.S. monetary policy influences mortgage rates
Regan Hagestad
September 24, 2015
Mortgage rates are directly affected by U.S. monetary policy is a variety of ways. Mortgage loans are typically insured through a government sponsored enterprise (GSE), which includes agencies like Freddie Mac and Fannie Mae. The loans are then packaged into mortgage-backed securities (MBS) and sold to investors in the bond market. Since bond prices and interest rate yields have an
