What Does a 25 Bps Fed Rate Hike Actually Mean to You? Today, the Federal Reserve will announce its latest interest-rate decision. If rates move by 25 basis points (0.25%), what does that actually mean for you? One important misconception first: A 25-bps Fed move does NOT mean mortgage rates automatically move 0.25%. The Fed controls a short-term policy rate. Mortgage rates are influenced more by the bond market, inflation expectations, economic conditions, and—most important
