Our continued reminder to our clients is that rates will increase, and increase sharply, no matter what the Fed does. The Fed does NOT have 100% control over market interest rates. The Fed’s limited tools are not enough to control the interest rates in the way many think they can.
What will spike rates: (1) The Fed pulling out of the mortgage market in March, when they stop buying mortgages; (2) News of inflation, such as spiking CPI numbers; and (3) News of the economy heating up, such as a sharp reduction in unemployment. ALL of these events are coming, and rates will spike.
Our repeat message: Buy soon and lock soon, while rates are ridiculously low.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167