It’s the 1st move since lowering the rate to zero in December 2006.  Rates on 30 year fixed will rise gradually.  The rate moves in the same direction as the fed funds rate, but not in lockstep.  Same for 15 year home loans, a popular refinance choice.  Adjustable-rate mortgages will react quickly to the fed funds rates.  Rates on ARMS are typically tied to the prime rate.  All this according to Dr. Jim Gaines, Real Estate Center Chief Economist.  This could eventually price some buyers out of the market, then this subsequent reduced demand could slow home price increases.  WE WILL JUST HAVE TO SEE!