The Federal Reserve says they are definitely, positively going to raise interest rates.

Check out this article from today's L.A. Times.  Click here for link.  Yup, the Fed now says that there is no doubt they'll raise interest rates, and soon. Nooooo!  The good news is that the rise will come gradually, so it doesn't shock the economy.

What that means for home buyers: interest rates have been gradually inching up this fall anyway, but it means that buyers will have higher mortgage payments than in the recent past.

What this means for home sellers: there will be fewer buyers, especially for starter homes and condos.  There probably may still be multiple offers on properties, because inventory is short.  However, if a house for sale sits on the market for more than a few weeks, a price reduction is probably warranted.