As expected, the Fed raised the overnight cost of money by 0.25 percent to a band of 1.25 percent-1.50 percent. The immediate response in long-term bond and mortgage markets was down. Slightly, but down.
Sticking to a script that economists and real estate analysts had long anticipated, outgoing Federal Reserve Chairwoman Janet Yellen Thursday announced a modest benchmark interest rate hike to 1.25 percent-1.50 percent, a move widely perceived as a reflection of confidence in the economy. This is the third such hike in 2017 and sets the stage for what will likely be three or four adjustments in 2018.