“Banks remain reluctant to lend after recording $678 billion in mortgage-related
losses and write downs in the past year and as house prices plunge. The collapse
of the private mortgage securities market means lenders find there’s little
demand for jumbo loans they want to sell. If low conventional rates entice
enough homeowners to refinance, jumbo home loans may become more affordable as
loan payoffs add liquidity to the banking system, said Keith Gumbinger, vice
president of mortgage-research firm HSH Associates Inc. in Pompton Plains, New
Jersey.” Source
As I stated in a previous post I expect Jumbo mortgage rates to drop in the next few months and come back closer to conventional mortgage rates. Again its just speculation and currently some Jumbos rates are around 6%, which is not great, but not horrible either.
If your looking for a rate qoute, click the big button and contact me.
