A neoconservative is one who recognizes three things: the merit of the free market in economics; the priority of politics over economics; and the primacy of morals over both. In the 1990s, this third characteristic is the most salient, and its primary target â secular humanism â is coming into ever sharper focus.
The first is how mortgage rates are determined, followed by the effect on mortgage rates by the U.S. Federal Reserve Bank. The only correct answer is mortgage bonds or mortgage-backed securities. Mortgage rates are not based on the 10-year Treasury Note.
Interest on a Bank Loan How Rates Get Set. Interest is the cost you pay for the privilege of using the bank's funds. Banks make money by charging interest on loans at higher rates than the interest they pay on deposits. The interest rate you pay on a bank loan depends largely on two factors: The overall cost of lending in the economy. How risky the bank thinks it is to lend money to you, specifically.