For the third time this year — and the eighth time in three years — the Federal Reserve has raised interest rates.

The most recent hike, which occurred during the last week of September, increases the federal funds rate a quarter percentage point, to a range of 2 to 2.25 percent. The hike brings good news, bad news and financial planning opportunities.

The good news about the Fed's rate hike

"Many people think that the Fed controls all interest rates, but they actually only control the Fed Funds rate and the rate that they charge other banks to borrow from the Fed," according to Monica Sonnier, CPA and member of the American Institute of CPAs National CPA Financial Literacy Commission.

She says the fed funds rate is the primary tool used by the nation’s central bank, and all other short-term rates are influenced by it.

"So, the short-term rates that influence the rates that savers and investors receive on savings accounts, money market accounts, CDs, Treasury bills, and floating-rate bonds, will increase probably in lock step with the Fed Funds rate," Sonnier explains.

This action will help retirees who rely on income from short term investments, but she warns that banks will be slow to raise their rates. "That’s because bank earnings are hurt by low rates and particularly by a flat yield curve such as we have now, and raising rates more slowly will help to boost their margins."

The bad news about the Fed's rate hike

Long-term rates have increased at a much slower pace than short-term rates — and that is what’s producing a flat yield curve.

"However, it is likely that more rate hikes could raise some of the long-term rates and thus mortgage rates," Sonnier says.

Home affordability is already an issue for many Americans — especially in light of stagnant wages. According to the U.S. Census Bureau, approximately 33 percent of homeowners say housing-related expenses exceed the recommended 30 percent of their household income.

"For those contemplating a home purchase, it would be better the lock-in rates sooner rather than later." Sonnier advises.

The rising rates are good news to investors. But for borrowers, she says there are only a few ways to mitigate the effect. "Try to lock in fixed rates before they rise further, or better yet, pay off the debt."

Adjustable-rate mortgages have declined, but for homeowners who have a floating rate, she recommends either converting to a fixed rate or refinancing before the floating-rate kicks in.

Financial planning opportunities to stay ahead of inflation

Sonnier offers advice for savers and investors, and also for borrowers.

For savers and investors: "Avoid locking in longer-term rates on CDs, as most of these offers do not compensate for the expected rate rises in the future," Sonnier says. "One- to two-year rates are attractive and can be rolled into new CDs in a year or so down the road, probably at higher rates."

She also advises caution when considering step-up CDs, bump rates CDs, or equity-linked structures. "That’s because these structures are typically structured to favor the bank or issuer and not the investor, and sometimes contain provisions that drive the interest rate on the instrument to zero."

For borrowers: "Look for opportunities to convert floating-rate (or teaser ARMs that will soon become floating rate) to fixed-rate structures while rates are still low," Sonnier says.

If you’re contemplating a home purchase, she recommends locking-in rates as soon as possible. "Look for lenders who offer special rates on loans secured by securities, as you can leverage some of those short-term investments you have that are at very attractive rates."