Fed raises target rate by quarter of a percent

Real estate industry remains unconcerned

The Federal Reserve’s Open Market Committee today reversed its course of slashing its target for the federal funds rate and instead raised the target by a 25 basis points to 1.25 percent.

The widely anticipated move drew little outward worry from the real estate community, despite talk of a housing bubble. Although the Fed’s target rate does not directly impact mortgage rates, it has an indirect effect and the ultra-accommodative 1 percent had fueled the red-hot housing market.