The Federal Reserve doesn’t set mortgage rates outright, but its decisions do play a role in the percentages lenders offer would-be homeowners. And even if the Fed keeps its benchmark rate unchanged, mortgage rates can still fluctuate. Here’s how the Fed’s monetary policy affects mortgages — and your ability to buy a home. The Fed's latest meeting At its meeting on Jan. 27-28, the Federal Open Market Committee (FOMC) voted to hold its benchmark interest rate steady. This follows three consecutive meeting ...