Last Wednesday Federal Reserve announced a quarter-point rate hike as the industry has expected. This is the second approved raise by the central bank this year. There will still be a third round most likely in September. Why rate hike is not a big concern But who cares about the raise of a quarter point? Banks don’t need any excuse to raise interest rate. Mortgage payers may already be used to the banks sending them occasional mail on revised interest rates and increased installments, which are made effective next month, immediately, or backdated a month ago. How we wish saving rates can also be raised as frequently as lending rates! Unlike the seasonal reductions of ERP rates by LTA during school holidays, unfortunately mortgage installments will never be revised downwards (not even temporarily) when Fed lowers interest rates. But does that bother homebuyers and mortgagors? Well, even with a 0.25 percent rate hike, borrowers are paying an increment of under 200 bucks. This is ......