They did it! They finally raised the Federal Funds rate. Now they have a the ability to reduce rates in the future should they feel they need to due to economic conditions. But what has happened in the last month since they raised the Federal Funds rate? Some people will be noticing increases in their HELOC interest rate soon, others will see it in their first mortgage either in a couple of months if they are on a monthly adjustable rate or sometime this year if their mortgage rate adjusts once a year.
However, there is GOOD NEWS! The average FNMA Fixed Rate mortgage rate has dropped since the Federal Funds rate was raised in December. So for now, mortgage rates are still great for the home buyer to buy and the homeowner to refinance. The FED says they will raise again and they probably will, but they will do it with a sharp eye on the Economy and of course the Stock Market, which has not fared so well since the hike.