In a long awaited move the Fed raised rates in December 2016 by half a point to .50% -.75%, after holding the overnight interbank lending rate a 0-.25%, (which is effectively zero percent) from June 2006 until December 2015. We are still at a historic, and some feel unhealthy, low rate.
Many market experts expect the rate, which reacts to an expanding economy and impacts the rate at which we can all borrow money, to rise possibly three more times in 2017.
The next Fed meeting is March 15-16 and as of this writing on March 3rd, expectations of a hike amongst market watchers and experts have recently jumped to just over 50%.
What this means for the housing market is higher mortgage rates, expected to top out at 4.3%. There are two ways to look at this- one, if you are in the market, lock your loan rate as soon as possible, as rates are highly likely to climb. However, even at 4.3%, money is still at near historic low rates, making borrowing still a bargain.