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Rates Will Shoot Up No Matter What the Fed Does

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.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167