The Federal Reserve's expected announcement of a rate increase on Wednesday has big implications for prospective home buyers and sellers, but experts have four words for anyone who's feeling that they need to act immediately: Don't do anything rash!
The Fed is widely expected to raise the federal funds rate by a quarter point, from a zero-0.25 percent range to 0.25-0.50 percent, for the first time in nearly a decade in an effort to keep the economy from overheating. When the Fed's rate goes up, so do interest rates of all kinds of other consumer loans, including mortgages, NBC News reported.
While the Fed's impending rate decision already has sent mortgage interest rates inching higher from historic lows and a rate hike will send them higher, experts note that it won't happen at once and it won't happen quickly.
Ahead of the Fed's meeting, the average 30-year fixed mortgage inched up to 3.95 percent last week, a slight increase from 3.93 percent and almost two-tenths of a point from its six-month low of 3.76 percent.