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Monday, August 06, 2007

Mortgage Rates Rise on Jumbo Loans

by Calculated Risk on 8/06/2007 09:17:00 PM

From the WSJ: Mortgage Fears Drive Up Rates On Jumbo Loans

Turmoil in the U.S. home-mortgage market is starting to pinch even buyers of high-end homes with good credit records ...
...
Lenders ... now are jacking up rates on jumbo mortgages for prime borrowers. These mortgages exceed the $417,000 limit for loans eligible for purchase and guarantee by Fannie and Freddie. They account for about 16% of the total mortgage market, according to Inside Mortgage Finance, a trade publication, and are especially prevalent in California, New Jersey, New York City, Washington, D.C., and other locales with high home costs.

Lenders were charging an average 7.34% for prime 30-year fixed-rate jumbo loans yesterday, according to a survey by financial publisher HSH Associates. That is up from an average of about 7.1% last week and 6.5% in mid-May.