Vanessa Carnevale

The Federal Reserve (Fed) plays a critical role in setting the benchmark interest rate for the U.S. economy, which influences the cost of borrowing across various sectors, including auto loans. When the Fed raises its rate, borrowing becomes more expensive for banks, which in turn pass those costs to consumers.

Mortgage-backed securities (MBS) are investment products that pool together home loans and sell them as bonds to investors. These securities have long been a staple in fixed-income portfolios, offering relatively stable returns with lower risk compared to other asset classes. However, like most fixed-income investments, MBS are highly sensitive to changes in interest rates. As […]