For home buyers and would-be refinancing households in Cottonwood , it's important to recognize that the Fed Funds Rate is an interest rate separate and distinct from "mortgage rates". Mortgage rates are not voted upon by the Federal Reserve. Rather, mortgage rates are based on the price of mortgage-backed bonds, a security bought and sold among investors.
Historically, there is little correlation between the Fed Funds Rates and 30-year fixed rate mortgage rates throughout Arizona. Going back 20 years, the benchmark rates have been separated by as much as 5.29% and have been as near as 0.52%.