The Federal Reserve raised rates on Wednesday… But what does that mean for those of us looking to buy a home in the near future?

The Federal Open Market Committee (FOMC) voted to raise the federal fund's target rate at their December meeting. This raise occurred for the first time within the year and only the second time in a decade.

A number of factors contributed to the 0.25 point increase (from 0.50 to 0.75), including the latest jobs report and low unemployment rate of 4.6%.

Even with the increase, rates are still historically low. Those watching the market expect a gradual rise in home loan rates while staying under 5% through 2017.

Time will tell what the long-term impact of the rate increase will be, but in the short term there is no reason for concern.