Wells Fargo & Co (WFC), JPMorgan Chase & Co. (JPM): Now’s the Time to Start Worrying About Mortgage Rates

And Fed economic projections aside, it’s not a mystery why it’s happening, either. Unemployment declined from 8.2% in May of 2012 to 7.6% in May of this year. And it’s well off of the double-digit levels we saw just a couple of years ago. In the first quarter, consumer spending was up 3.3% from the prior year. It’s up 7.6% over the past two years. First-quarter nominal GDP was up 3.4% from the prior year. And that’s even as federal and state government spending continues to be a drag on growth.

In short, the Federal Reserve has been providing serious “accommodation” in an effort to aid the economic recovery. The recovery hasn’t been fast or showy, but it’s happening, and market participants are anticipating the logical next step.

In response, freaking out is certainly one option. Perhaps a better one is soberly considering what exactly higher rates will mean for your bottom line.

The article Now’s the Time to Start Worrying About Mortgage Rates originally appeared on Fool.com.

Matt Koppenheffer owns shares of JPMorgan Chase. The Motley Fool recommends Wells Fargo. The Motley Fool owns shares of JPMorgan Chase and (NYSE:JPM) Wells Fargo.

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