Through today, August 23, 2018, the Fed has kept its word and already raised the discount rate to lenders twice in 2018. They have repeatedly indicated that we should expect at least two more rate hikes before the end of the year. Just two days ago they indicated that they would make two more additional rate hikes, presumably after the first of the new year.
Why are they doing this? In response to a booming economy, growth in the GDP and high employment, they do this to stay ahead of inflation by tightening the money supply. Of course the increased rates to lenders will be manifest in slight increases in home loan rates. The Fed is well aware of this and thus far have made very small increases each time but even if each rate hike results in a 1/8% increase on home mortgage rates, by late spring the rates could be as much as 1/2% higher than they are today.
The takeaways? If you are considering a home purchase, all other things being equal, buying earlier rather than later will most likely save you considerable money of the life of the loan. And on the average nationally this will gradually tend to flatten our home sale prices.
We hope this helps. Joe