The Federal Reserve is considering dropping its promise to be “patient” in raising interest rates, according to an article by the Wall Street Journal. Discussions on whether to hike rates will likely be an important topic at the Fed’s 
[1]next meeting March 17-18. On Tuesday, Fed officials began their self-imposed pre-meeting blackout period, in which they stop making public comments on the economy or policy.
“If economic conditions continue to improve, as the [Fed] anticipates, [it] will at some point begin considering an increase in the target range for the federal funds rate on a meeting-by-meeting basis,” Fed Chairwoman Janet Yellen said in congressional testimony last month. “Before then, the [Fed] will change its forward guidance.”
In recent interviews, the Fed has made it clear they want to move away from the pledge to be patient. They have held their benchmark short-term rate, the federal funds rate, near zero since December 2008. The lackluster housing market was concern on Yellen’s mind when she gave the speech emphasizing the patience pledge.
The housing market of 2014 was better than it had been in years, with a low number of homes entering foreclosure, favorable mortgage rates, and more affordable housing options available to consumers. The impact of a mortgage rate hike really depends on the kind of financing the consumer has, whether the mortgage has a fixed or adjustable rate, and what the loan is tied to.
Thirty-year fixed-rate mortgages are typically tied to the yield on 10-year treasury bonds, and rates on adjustable rate mortgages (ARMs) are tied to the federal funds rate. The average 30-year fixed mortgage rate fluctuated between 4 percent and 4.5 percent for most of 2014.
Higher rates could have an effect on housing market trends and could greatly influence what consumers can afford. At the current rate a $220,000 home would cost a homeowner $980 a month. That monthly price could increase to $1,200 if the rate is raised to 6 percent.