The FOMC minutes are out. "The Federal Open Market Committee decided today to raise its target for the federal funds rate by 25 basis points to 5 percent. Economic growth has been quite strong so far this year. The Committee sees growth as likely to moderate to a more sustainable pace, partly reflecting a gradual cooling of the housing market and the lagged effects of increases in interest rates and energy prices."

"The Committee judges that some further policy firming may yet be needed to address inflation risks but emphasizes that the extent and timing of any such firming will depend importantly on the evolution of the economic outlook as implied by incoming information."

"The quarter point hike brings rates to the highest level in more than five years. Banks will respond by increasing the prime rate to 8%. The prime is the base rate for many credit cards, and consumer and business loans. Other rates, such as those on variable-rate credit cards and home equity lines of credit, likely will continue to rise."

"In the statement announcing Wednesday's rate increase, the Fed ..added another phrase in the latest statement saying that 'the extent and timing of any such firming will depend importantly on the evolution of the economic outlook as implied by incoming information.'"

"Mortgage applications in the U.S. fell last week by the most since February as higher borrowing costs slowed purchases and pushed refinancing to its lowest level this year. The average rate on a 30-year fixed mortgage rose from 6.57 percent a week earlier. At last week's average rate, the monthly principal and interest costs for each $100,000 of a loan would be $639. A year ago, when the average rate was 5.77 percent, the payment was $585."

"'The housing slowdown is a story that's evolving as we speak, and it will probably get worse in the second half,' said (economist) Chris Rupkey 'The cost of credit is moving up. Home prices have increased so much it is scaring people away. There's sticker shock.'" To be updated.