Tapering has Begun - What Should You Do with Applications Taken Now?

The prospect of the Fed reducing its asset purchases weighed heavy on interest rates for the 2nd half of 2013, causing volatility and generally pervasive upward movement.

Tapering has begun.  Markets had done so much to come to terms with it ahead of time that it essentially just confirmed the 6 month move higher in rates, but didn't make for another immediate spike higher.

That said, we should assume that we're still in a rising rate environment on average.

NOTE: Lenders will be adjust rate sheets at various times in December and January to account for the most recent hike in Guaranteed Fees.   This will unequivocally raise rates by at least an eighth of a percent for almost every borrower, and in most cases .25-.375%. Depending on the lender, those changes will take place overnight and have already begun.

In summary, the same song and dance continues. As bond investors pondered the short and long ramifications of yesterday's Fed tapering announcement, it will take something big to break up the glacier slowly moving down the hill (or up in rates) at this point. I still think locking at or shortly after application is the best move for the foreseeable future.

Continue to follow me through my website www.CallTheMoneyMan.com, where you can check out my latest input to the rates & trends.