In contrast, when banks lend to YOU, e.g. for the purchase of your house, they charge a rate higher than the rate at which they lend to eachother. This is how they make money on those mortgages.
That's why the mortgage rate tracks the fed rate, roughly (although they remain high well after the fed rate has gone past the peak. Like I said, that's how banks make money).
Now hold in your mind the close tracking of these two rates.