Correct mortgage rates really come from MBS ( mortgage backed securities) which trade similarly to the 10 year bond in general, but are actually separate. Fed funds are an indirect influencer and reflection of the whole economy.

In the Wizard of OZ...it was some guy behind a curtain. Has that changed?

In the resale market (new mortgages), we may not even see an increase unless we see a surge in general economic inflation, which is not happening right now.

Investors do.

That rate like is tied to short term.  Heloc is tied to it. It has been 5% or over from 2.5% a few years ago.

30 year fixed is now at 4.65%. Mortgage rate is money supply correlate to 10 year(long term) better.  When short term rate is higher than long term watch out.  That is the flat yield curve......

No matter how one looks at it, the mortgage interest rate will bump up soon. 

It will eventually result in higher rates.

I know Fred Griffin will have the exact answer to your question BUT you can bet that in the end it WILL affect the mortgage rate.

Demand.

It eventually affects mortgage rates.

Annette,

I think that both Candice A. Donofrio and Corinne Guest gave you the answer. A

I know. And I know because Jason E. Gordon taught me.

If someone wants to read a very informative article on it: 

https://www.bankrate.com/finance/mortgages/how-lenders-set-rates.aspx

The market. 

   It's a combination of factors.  The Fed plays a part.

It does influence it.

I was wondering how that might impact mortgage rates and found a good laymen explanation here... 

https://www.dallasmortgageplanners.com/what-impacts-mortgage-interest-rates/ 

I don't know.

Somebody doesn't just make it up? I've been wrong this whole time?

I will read answers. 

Happy Holidays!

The Fed is not actually run by the Feds, and as Richard Weeks points out they just respond to others.

Mortgage rates are based on long term Treasury securities rates. The Fed rate is a short term rate and other rates are usually scaled up to reflect added risk over time.

Investor yield demand in the 10 year bond market is a key influencer!

It's all a manipulation in my eyes. 

IF the interest rate moves, it usually is before the Fed rate hike.

Richard Weeks nailed it.

The housingmarket has some to do with the rates as deman can set prices also

I have nothing to add here but enjoyed the read much Annette.

Boy, I am going to los e sleep over this one.

Supply & demand. 

Looks like Richard Weeks nailed this one with a lot of Ho Ho Ho and Merry Merry Red. 

I can't top Richard's answer!