December 18th, 2013 5:34 PM by BILL WILBANKS
The FOMC announced the first $10 billion taper of the $85 billion monthly purchase program to start January of 2014. The DOW was off to the races, but the Bond market pretty much had a negative impact on pricing factored in this week already as it ended up. By days end it looks like most lenders bumped their points up a couple times on the 30 fixed by 0.25% to 0.375% point. That's some good news since it could have been worse, though Bernanke stated the plan is to make similar reductions each meeting, though it's flexible dependent on the market results at that time. We'll have to see what the balance of the month brings on rates based on what we know now. But they'll be heading higher for sure in 2014 which is already baked in the cake in a number of ways. The first quarter of 2014 will say a lot about what we will be able to expect for the real estate market next year. All and all it could have been much worse today. The day will soon come when we'll look back on those heady days when 30 year fixed rates were in the 4's. It's a great time to buy a home and get a very low rate. Call a realtor and start shopping as soon as you can. Then call me to handle your financing package. You'll be glad you did.
Bill Wilbanks