[fludlight]

> Harder for me to buy a house. Bummer.

Yes and no. Yes because the monthly payment on a new mortgage for a given purchase price just went up. No because that payment went up for everyone by the same amount at the same time, so purchase prices will (theoretically) adjust downward.

Keep in mind that today's news means a bak will lend you money at 4% instead of 3.75%, so the effect is minimal.

Other factors that influence the housing market such as strength of the local economy and availability & quality of financing won't be affected unless we see substantial rise in rates.

[bmm6o]

> No because that payment went up for everyone by the same amount at the same time

The rate is more significant the more you borrow, and not everyone has to borrow the same amount to buy the same hypothetical home. Buyers who have to borrow more are less attractive to sellers, ceteris paribus, since there's a greater chance of the deal falling through.

But if we're talking about a .25% difference, it won't have a real measurable effect.