The Federal Reserve raised its key interest rate for the first time in three years today. Officials were unanimous in their vote for a quarter-point increase, and indicated more may be coming later this year.

Fed Chair Kevin Warsh reiterated his commitment to price stability, part of the central bank’s dual mandate from Congress, and said prices had been rising too fast for too long.

The decision was a comfort to those of us who have been sweating the Fed’s independence, but it will raise borrowing costs for all of us in the meantime. That’s where we’ll start today.  — Tony Wagner, newsletter editor 

Two things dictate how much it costs every month to own a home: The cost of the home itself, and the cost of borrowing the money to buy it. The first has been a problem for a while, said Bankrate analyst Jeff Ostrowski.

“Home prices remain at record levels, and so home prices are really pushing the outer bounds of affordability,” he said.

That’s a classic supply-and-demand issue.

“There just aren't a whole lot of existing homes on the market. And that that small supply of homes for sale is being competed over by buyers who are willing to bid up,” Ostrowski said.

While that’s been happening, interest rates have also gone up. Lenders are asking for more return on their money because they’re spooked by the effects of the war in the Middle East. Meanwhile, mortgage applications are down 19% since last year.

“Oil has spiked … and then that's all coupled with inflation levels,” said John Hummel, head of home lending at US Bank. He said as long as those factors stick around, housing is not going to get any more affordable.

And more would-be homebuyers are just going to stay on the sidelines.

“Once rates hit 7% I think home buyers are reticent to put it in an application and to shop for a home,” said Jessica Lautz, deputy chief economist with the National Association of Realtors

The “Charging Bull” is an iconic part of New York City’s landscape, and a longstanding symbol of America’s financial markets. But Fractenburg found out the sculpture’s ownership is unclear — because of clerical quirks it’s possible no one really owns the sculpture at all. All that patina on the statue is a low-stakes lesson on another economic concept: The tragedy of the commons.

A whole 36 hours ago, top Trump economist Kevin Hassett claimed the White House would fully support today’s rate decision.

“Whatever [Warsh] does tomorrow, we’re going to respect the process,” Hassett, who was once in the running for Fed chair, told CNBC yesterday. 

Who’s “we”? Trump lashed out at the independent central bank on social media this afternoon, again demanding interest rates at 1% or less. ( Here’s why that proposal would hurt the economy.)

A reporter had asked Warsh about the president’s past calls for lower rates today, and he characteristically declined to respond.