What's going on? Everyone, welcome to Real Talk Real Estate. This is Mortgage Monday. I'm David Green. He's Christian Bachelder and where your mortgage nerds.

Got an update for everybody on what's going on with the Fed and the stubborn rates. But before we get into that, Christian, how's your day going? It's going pretty good.

We're fortunate to have a lot of business, a lot of clients that reach out to us to finance your endeavors in real estate.

And, you know, always grateful.

Just want to take a second and say if you've made the jump and decided to trust the one your endeavors in real estate. And always grateful. Just want to take a

second and say if you've made the jump and decided to trust the one brokerage with your business, we very much appreciated. That's how we make our livelihood here, right? We spend our time giving away a lot of free information. And ultimately at the end of the day, we do have a business to run. So big thank you out there to all of our clients who have trusted us with their mortgage That is right. And if you don't mind, please follow the show because we want you to keep listening and we want to keep making content for you. Also, a little ask before we get into this thing. If you know a loan officer or you know a real estate agent that knows loan officers, can you just tell them that we're looking to bring in new loan officers because we have more business than what we can keep up with. We would actually like to do more advertising,

but we don't think that our staff can keep up with like a whole bunch more lead flow other than what we generate organically right now. So if you know somebody who's in the business and they'd like a better place to work, we would love to talk to them. So you can send them Christian's way or my way. We'll give our emails and our contact information at the end of the show. But before we do that, let's talk about the Fed choosing to hold interest rates steady. This article talks about what that means for car loans, credit cards, mortgages, and more because many people don't realize it, but the Fed is not controlling mortgage rates. They are controlling interest rates for

everything. Mortgage rates are one component of that. Christian, can you take a minute to just kind

of break down the difference between interest rates and mortgage rates, but how they are connected

and affect each other? Yeah, ultimately the Fed, it is definitely a misconception that the Fed just

independently goes and, you know, decides what a credit card is, what a auto loan is, what a mortgage is.

And they don't. They really control the federal funds rate, which is the cost of short-term borrowing that banks use typically.

And the margins for, you know, personal level loans, mortgages, car loans, credit cards, lines of credit, even business lines of credit,

all kind of tail off of the federal funds rate, and even more so off the 10-year treasury

yield.

And without getting too complicated, the Fed basically determines the value of money, right?

It determines the value of leverage.

That's the best way it was ever explained to me.

They determine how accessible it is, how cheap it is, and ultimately control how much money

moves through the banking system in America based on setting their interest rates. Obviously,

if banks are borrowing money at 7, 8, 9%, there's not a whole lot of margin they can make unless

they're charging clients 12, 15, 14%, right? So that's why a low federal funds rate in general is usually better for the personal

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