For now the rate hike will have mostly a psychological impact on the market. Investors will probably use this as a reason to push prices down before re-entering the market at lower levels.

The view is that the market could withstand a 25 basis point rate hike.

We expect a hike of 25 basis points and probably 50 basis pints, ... Any smaller rate hike or no rate hike at all will cause a big sell-off of the euro on all cross rates.

We expect a hike of 25 basis points and probably 50 basis pints. Any smaller rate hike or no rate hike at all will cause a big sell-off of the euro on all cross rates.

The dollar will trade with a downward bias. The market is pricing in an ECB rate hike Thursday and strong GDP report Friday.

The Fed's rate hike on Tuesday was expected and the Fed's cautiously optimistic outlook calmed the market. As a result, 30-year fixed mortgage rates should stay steady near or just below 6 percent for a while, giving prospective homebuyers another chance to get in with a low rate.