Finance
The Federal Reserve's actions on the federal funds rate affect West Virginia mortgage rates because:
AThe Federal Reserve directly sets all mortgage interest rates
BChanges in the federal funds rate influence short-term rates and lender borrowing costs, which in turn affect mortgage rates✓ Correct
CMortgage rates are regulated to track the federal funds rate by statute
DWest Virginia has a state usury law that mirrors the federal funds rate
Explanation
While the Fed doesn't directly set mortgage rates, changes in the federal funds rate influence short-term borrowing costs for banks. These changes, along with bond market movements, affect the long-term mortgage rates offered to borrowers.
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