We have all been anticipating a mortgage rate hike, expecting it to mark the end of an era of low rates and affordable housing. In May, the average loan with a 30 year fixed mortgage was $231,000 with an interest rate of 4.03%. The monthly prinicapal and interest rate payment is $1,107 per month. With an increase in of rates, the same loan at 4.53% would result in a 6% increase in monthly payments, bringing the monthly to $1175. Make it a larger loan, like the ones that one gets in LA and those payments might hurt.

GOOD NEWS!

The Fed decided not to raise its key interest rate in September. America's central bank hasn't raised rates in almost a decade and rates have been stuck near zero since the depths of the financial crisis in December 2008.

Concerns about a global economic slowdown, low inflation in the U.S. and volatile stock markets in August lowered the chances of a September rate hike. The Fed's inaction Thursday appears to confirm that those fears weighed on its decision despite a U.S. economy that's strengthening overall.

Overall, the Fed does sound more optimistic about the U.S. economy. It raised its expectations for economic growth this year to 2.1% from 1.9%, and it lowered its projection for the unemployment rate by the end of the year to 5%. Currently, unemployment is 5.1%.

Lucky for us, it wasn’t enough to raise the rates in September.

The Fed still plans to raise rates this year, according to new economic projections the Fed also published on Thursday. Thirteen of the 17 members of the committee predicted the Fed would raise rates by at least 0.25 percentage points, and six predicted an even larger increase.