You’ve probably seen the headlines: The Fed may raise rates again. 
If you’re thinking about buying or selling a home, you may be wondering what that means for mortgage rates and your plans.
But there’s one important misconception worth clearing up:
MYTH: The Federal Reserve sets mortgage rates.
REALITY: The Fed influences mortgage rates, but it doesn’t directly control them.
So, What Actually Moves Mortgage Rates?
Mortgage rates tend to follow the 10-year Treasury yield, which moves based on several factors, including inflation, economic growth, employment, and investor expectations.
The Fed is one part of that equation. 
When the Fed raises its Federal Funds Rate to fight inflation, financial markets react. That can put upward pressure on Treasury yields and, in turn, mortgage rates.
The good news? 
If those efforts succeed in bringing inflation down, that could eventually create room for mortgage rates to ease as well.
What’s Happening Now?
There are some encouraging signs. Recent inflation data has shown improvement, including declines in both headline and core PCE inflation.
But inflation remains above the Fed’s 2% target, which means we could continue to see some rate volatility before meaningful relief arrives.
That brings us to the question I’m hearing from buyers and sellers:
Should I wait for rates to come down?
Trying to perfectly time mortgage rates can be tricky. Instead, I recommend focusing on whether a move makes sense for your finances and your life at today’s rates.
If You’re Buying
Start with a solid pre-approval so you know exactly what you can comfortably afford. 
Talk with your lender about available loan programs, rate options, and potential seller concessions. And when you find the right home and go under contract, discuss whether locking your rate makes sense. 
If You’re Selling
Today’s buyers are more payment-conscious, so pricing and strategy matter. 
Depending on your goals, offering a buyer concession or helping with a mortgage rate buydown may sometimes be more attractive than simply reducing the asking price.
The Bottom Line
The Fed doesn’t set your mortgage rate. But its decisions can influence the economic forces that move rates.
And while everyone would love a crystal ball 
telling us exactly where rates will be three or six months from now, your real estate strategy shouldn’t depend on predicting the unpredictable.
If buying or selling is on your radar, let’s look at the numbers and build a plan around today’s market, your goals, and your timeline.