"Well, we're just now seeing the reductions in mortgage rates. The mortgage rates are based on the ten-year rate and the Fed controls the overnight or the shorter rates"

Franklin Raines is referring to the recent decrease in home mortgage rates. This reduction is connected to the ten-year rate, which is a criteria for long-lasting rate of interest. The Federal Reserve, or the Fed, is accountable for controlling the over night or shorter-term rates. This implies that the Fed has the power to affect the ten-year rate, and hence the home loan rates. This is why the recent reduction in home mortgage rates is connected to the Fed's actions. By controlling the overnight or shorter-term rates, the Fed is able to affect the ten-year rate, and therefore the mortgage rates. This is why the recent decrease in home loan rates is linked to the Fed's actions.