While the Fed decided to keep rates where they are last week, Trulia's chief economist Selma Hepp takes a look at what a possible increase would do to the mortgage market, and by extension, the new home sales market.

The Fed will obviously move with deliberation and caution, and when it does decide to raise rates, it would be nominal, probably about 25 basis points. While this increase wouldn't stop people from buying a home, it would effect the type of home they could buy, Hepp says. 

While most experts do not anticipate mortgage rates to move much beyond 4.5% over the next year, 46% of Americans who would ever buy a home say that rates beyond 5% would discourage them from buying their first or next home. 

Click over to TruliaTrends to learn more about America's reaction to the possibility of rising mortgage rates: 

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