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See what's happening with home values in more than 400 metropolitan areas with HSH's Home Value Tracker, just updated though the second quarter of 2022.

See what's happening with home values in more than 400 metropolitan areas with HSH's Home Value Tracker, just updated though the second quarter of 2022.

Federal Funds Rate: Current Federal Funds Rate, Historical Federal Funds Rates, Table and Graph

This graph lists the stated Federal Funds rate, as released by the Federal Reserve. The last change to this rate occurred: 09/21/22.

Find out how changes in the federal funds rate may affect you

We're often asked: Does the federal funds rate affect mortgage rates?

Federal Funds rate

HSH grants permission to utilize this graph,
providing that the graph and its contents are not altered in any way.

Until December 2008, the Federal Reserve set an explicit target rate for the Federal Funds. Since that time, the central bank has instead expressed a target range for the overnight intrabank lending rate. Post-2008 data shown here is the top value for the target range. Learn more about federal funds.

Here are the figures from which the graph was derived.

Date Change
(Basis Points)
Increase  Decrease
Level or
Max Rate
(Percent)
2022
September 21
July 27
June 15
May 4
March 16
0.75
0.75
0.75
0.50
0.25
...
...
...
...
...
3.25
2.50
1.75
1.00
0.50
2020
March 15
March 3
...
...
100
50
0.25
1.25
2019
October 30
September 18
July 31
...
...
...
25
25
25
1.75
2.00
2.25
2018
December 19
September 26
June 13
March 21
25
25
25
25
...
...
...
...
2.50
2.25
2.00
1.75
2017
December 13
June 14
March 15
25
25
25
...
...
...
1.50
1.25
1.00
2016
December 14
25 ... 0.75
2015
December 16
25 ... 0.50
2008
December 16
October 29
October 8
April 30
March 18
January 30
January 22
...
...
...
...
...
...
...
75
50
50
25
75
50
75
0.25
1.00
1.50
2.00
2.25
3.00
3.50
2007
December 11
October 31
September 18
...
...
...
25
25
50
4.25
4.50
4.75
2006
June 29
May 10
March 28
January 31

25
25
25
25

...
...
...
...

5.25
5.00
4.75
4.50
2005
December 13
November 1
September 20
August 9
June 30
May 3
March 22
February 2

25
25
25
25
25
25
25
25

...
...
...
...
...
...
...
...

4.25
4.00
3.75
3.50
3.25
3.00
2.75
2.50
2004
December 14
November 11
September 21
August 11
June 30

25
25
25
25
25

...
...
...
...
...

2.25
2.00
1.75
1.50
1.25

 

What are federal funds?

Money ebbs and flows in and out of banks every day. At the end of a day, banks are required to have a certain amount of cash ("reserve") parked with the Federal Reserve, an amount which is determined by the amount of deposits a bank holds. This amount changes from time to time.

In a given day, some banks may see a large outflow of cash while others see a large inflow, so a bank could have a deficit or a surplus. Those with a deficit of funds can borrow from those with a surplus to meet their end-of-day reserve requirements. These loans are made on an intra-bank, overnight basis.

What is the federal funds rate?

The federal funds rate -- currently expressed as a range of interest rates -- is essentially the interest rate the Federal Reserve wants a reserve-lending bank to charge a reserve-borrowing bank for the use of borrowed funds overnight. This is a way for a bank with surplus funds to be able to earn interest on those excess reserves.

Monetary companions to the federal funds rate
To help control the amount of money in the banking system, the Federal Reserve itself also pays interest on reserve balances (IORB), but at a rate slightly less than the federal funds rate. A bank may choose to park funds with the Fed and earn a risk-free return rather than lend them out. Having a risk-free reference rate can influence the interest rates it charges to make loans that carry risks.

Banks can also borrow directly from the Federal Reserve itself using a Fed-run credit facility called the "discount window", where the Fed sets "discount rates" based upon the kind of collateral being pledged by the bank ("primary", "secondary" and "seasonal"). Although the Fed at times has worked to downplay it, discount window borrowing by banks is said to carry a discount window stigma, since it may suggest that a bank may be in a weakened financial condition and can't find another bank to lend it the reserves it needs at a price it is willing to pay.

Click here for a list of indexes for Adjustable Rate Mortgages.

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