The Fed just raised interest rates for the first time in years, which is bad news for borrowers, homebuyers, and builders, and a political blow to Trump, who picked Fed chair Kevin Warsh specifically to cut rates.

• The vote was unanimous, and most Fed officials expect one more hike this year.
• The Fed blames three things: a solid job market, inflation not falling fast enough, and the Iran war pushing up oil and diesel prices.
• Trump is demanding rates of 1% or lower, but the Fed is ignoring him.
• Credit cards, car loans, and home equity loans get more expensive right away, while mortgage rates near 7% stay high because government bond yields are also up.
• Builders who rely on short-term loans will build fewer homes and focus on expensive ones for rich buyers, while data centers are the only projects still getting financed.

Outlook: With the Iran war showing no end in sight and gas heading toward $4.50 a gallon, expect borrowing costs to stay high or rise further this year, keeping the housing market stuck.