The Discount Mortgage Store

A borrower sees an adjustable rate move and naturally asks, “Did the Fed raise mortgage rates?” The answer is usually more complicated. With SOFR vs prime rate, the benchmark matters because it can determine how quickly your payment changes, how your lender calculates interest, and whether one loan structure is a better fit than another.

But do not assume either rate tells you where every mortgage rate is headed. A 30-year fixed mortgage, a HELOC, and an adjustable-rate mortgage can react to the same Federal Reserve news very differently. The loan documents, not the headline rate on the news, tell you what drives your payment.