The Federal Reserve raised their interest rate yesterday for the first time in nine years - a bump of 25 basis points from zero to .25%. This rate bump although not directly connected to mortgages the fallout will eventually trickle down to consumer loans. The good news here is that although the Fed interest rates are clearly headed up its going to be a slow, gradual climb. I would expect to see home buyers thinking about buying to slip off that proverbial fence and start looking for a home as their buying power slowly shrinks due to rise in interest rates. The spring market here in West Seattle could become slightly crazier than what we've experienced in the last two years. See Article