Why there's no need to panic about rising interest rates

  • The Federal Reserve has raised the Fed Funds Rate by 0.25 percent.
  • Interest rates for revolving credit such as home equity loans are tied to the Fed Funds Rate, but mortgages are not.
  • The Fed has said any upward movement in the Fed Funds Rate will be slow and steady but will reflect a greater economy.

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After seven years of some of the lowest interest rates in recorded history, the Federal Reserve has decided to raise the key Fed Funds Rate by 0.25 percent, which is causing some to be concerned that it will lead to a jump in mortgage rates and negatively impact the U.S. housing market.