• As expected, the Federal Open Market Committee of the Federal Reserve voted to raise the target range of the benchmark federal funds rate, which influences interest rates offered by lenders on mortgages.
• The Summary of Economic Projections shows three such increases in 2017 and three more in 2018.

Today’s widely anticipated interest rate increase is a reflection on the broad-based strength of the U.S. economy, and already partially priced into mortgage markets. Rising rates pose just a modest headwind for home shoppers in the priciest housing markets. For the typical American home shopper, the implications of today’s vote should only increase their monthly mortgage payment by about $16, or about $197 per year. Tight inventory remains a much more pressing concern for home shoppers today, a situation that is unlikely to ease in the months ahead.