Is There a Correlation Between the Fed Funds Rate and Mortgage Rates?

There is a strong correlation between what the fed does in terms of overnight rates and what happens to late, long term mortgage rates. The Fed has another tool right now besides the overnut interest rate, and that's their balance you rit. That's the nine trillion dollar acid portfolio. They're buying mortgage back securities. But if there are fewer buyers of mortgage back securities, because the fet is buying fewer of them, and soon may not be buying any, then some one else will have to come in and buy those.