Fed Raises Interest Rates

Federal Reserve Chair Janet Yellen holds a news conference following day two of the Federal Open Market Committee (FOMC) meeting in Washington, U.S., December 14, 2016. REUTERS/Gary Cameron

The Fed announced Wednesday that it would increase interest rates by a quarter point to between 0.50% and 0.75% and gave guidance that three rate increases are anticipated in 2017. New customers shopping for a mortgage are likely to see little impact since this was an expected rate increase and is largely built into current rates. Customers with variable rate mortgages may see a rate increase in the future.

Citizen's Bank announced the following: 
The Federal Reserve had its Open Market Committee meeting on December 13 and 14. During this meeting, they raised the Federal Funds Target Rate (Fed Funds Rate). As a result, Citizens Bank is raising its prime rate from 3.50 percent to 3.75 percent, effective December 15, 2016. This increase is in line with the industry rate increase driven by the Federal Reserve’s decision to raise the Fed Funds Rate.

More from the Wall Street Journal: http://tinyurl.com/gry6vxm
And Reuters: http://tinyurl.com/gobpndn