It is in turn based on the federal funds rate, which is set by the Federal Reserve. The COFI (11th District cost of funds index) is a widely used benchmark for adjustable-rate mortgages.
The fed funds rate is the interest rate at which depository institutions (banks and credit unions) lend reserve balances to other depository institutions overnight, on an uncollateralized basis. The Federal Open Market Committee (FOMC) meets eight times a year to determine the federal funds target rate.
Policymakers led by Fed chairman jerome powell voted 8-2 in favor of a small cut in the federal funds rate, and recommitted to their promise to "act as appropriate" to sustain the country’s longest.
Federal Funds Rate (Fed Funds Rate) History (Historical) – A Comprehensive History of The Federal Funds Rate, Also Known As The Fed Funds Rate, Inlcuding The Current Federal Funds Rate.. interest rates will be on October 30, 2019.