The Federal Reserve governors voted last Wednesday to raise interest rates by 0.25 percent, to 0.75 percent to 1.00 percent. "That Fed move is already built in to rates" for other products (like mortgages), notes Lou Barnes with Inman News - which seems to be the consensus from other experts, too. The Federal Reserve sets the rate for the overnight exchange of money by banks; governors adjust the rate to help curb inflation or stimulate growth, depending on their assessment of what would be best for the economy. Although this rate is not the same thing as the mortgage interest rate that buyers pay when they take out on a loan on a home, movement of the Fed rate up or down can put pressure on mortgage interest rates. The Fed also dropped a hint or two regarding future rate hikes in its release announcing today's rate change: "The Committee expects that economic conditions will evolve in a manner that will warrant gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run," stated the release. "However, the actual path of the federal funds rate will depend on the economic outlook as informed by incoming data."
Inman News, March 17, 2017 (excerpts)