Jumbo rates are greatly improving!
Rhonda Porter on 10 18, 2007
I couldn’t wait until Friday to share some good news with you: 30 year fixed Jumbo rates are available at 6.500% (APR 6.653%). 
This is priced at 1 origination/discount point for a 30 day lock and is a significant improvement over last week’s quoted rates.
Earlier this week, Congressman Barney Frank submitted a bill requesting that Fannie Mae and Freddie Mac be allowed to lift the current loan limits to $625,000 for a 6 month period.
Watch for a complete “Rate Update” to be posted at the regular scheduled time: Friday.
About the Author: Rhonda Porter
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31 Responses to “Jumbo rates are greatly improving!”
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Do you really think bailout is the solution?
Ubersalad, where did I say anything about me being for a bailout?
raising the loan limit to 625k and lowering jumbo rate doesn’t sound like a bailout to you? you call yourself a professional or just playing ignorant?
Barney Frank is also in favor of legalizing gambling in his home state of Massachusetts.
http://www.bostonherald.com/business/general/view.bg?articleid=1038263
Snake eyes!
Barney Frank is an opportunistic snake in the grass. Every time I listen to this guy I wonder how he achieved elected office, but then I look at the other members of Congress and then I realize they are almost all shills.
Ubersalad, did you read my post? I did not suggest a bailout. I am letting people know that jumbo rates are much improved. What does that have to do with a bailout?
I’m also informing readers that conforming loan limits may be raised…it’s still up in the air. What’s ignorant about that?
This bill is supported by others besides Barney Frank. I’m simply reporting the facts.
I guess I’ll spell out what I meant…
Base on the two “facts” you posted, both of which sounds like bailouts. So I asked, do you think bailout is the solution? But I guess you’re used to being attacked, so you think this was an attack.
Thanks for the updates Rhonda. I so very much appreciate the rate posts, but closed comments seems to be the only way for us to get the info without the snarky comments. Delete them; ignore them or close to comments. Your choice. This is valued and valuable info that needs to be reported.
Thank you, but you don’t have to take the abuse.
blog but can’t take the hit?
Thanks, Ardell. Since this post was not just about rates, I kept it open vs closed. I don’t know where Ubersalad is coming from saying that I can take “the hit” or that I voiced an opinion on bailouts. This was jus reporting and “Ubersalad” is twisting it to fit to whatever his/hers needs seem to be. No where in the post do I state that I agree or disagree with the loan limits being raised.
Stating a current jumbo rate improving and what’s going on in congress is just the facts. Run with it Ubersalad…run.
As long as the qualifying terms remain sane, i.e loans are only made to people who can provide solid proof that they can afford to pay them back I like both these changes. If it can save people that got scammed into ARMs when they really could afford a fixed rate that they no longer can qualify for due to the jumbo premium it’s a good thing if this premium comes down.
It looks like rates are dropping because investors are betting on a recession. In that scenario, low rates is not good, as jobs and the economy will be effected. Despite a very possible recession, inflationary pressures continue to mount including a developing oil shock. It will be interesting to see how this all plays out in the local and national market. By the way, thanks for opening the comments – although my views are negative regarding the economy (not that I want the economy to be weak, in my view I’m just being a realist), I appreciate the oppotunity to participate in a dialog. If a few commentators are viewed as being snarky, that’s still no reason to close comments. That would be like eliminating free speech just because you didn’t like the attitudes of a few demonstrators.
Hey Matthew,I agree.As a up to recently lifelong die hard union Democrat,there is so much foot tappin and hand swiping between Dems.+Repubs,they may as well be the same party.Thats why Dr. Ron Paul shakes em up.A true patroit trying to restore our rights and dismantle big runaway Gov.And ubersalad,some of them here cant take a hit,but Rhonda isnt one of them.Free speech and free America.**These comments subject to review
fgm, Friday’s rates are closed to comments. It’s essentially a rate sheet. I typically don’t have a lot of commentary included with the rates.
I’m glad to see the jumbo rates returning closer to where they were before August (they were 0.25% higher than conforming before).
nice… now if i can only get those JUMBO buyers and sellers..thats would be especially cool…
I’ll offer a more polite interpretation of Ubersalad’s question.
Conforming loan limits are supposed to be set based on changes in the national median home price. National medians have gone down this year, so following the rules, so should conforming loan limits.
Instead, limits have been held steady and an increase has been proposed. This is considered by many to be a bailout, since the government is going against the original rule and intent of the conforming loan limit.
I can see how it will help some, but there’s no way around the fact that allowing bigger loans agains depreciating assets, all other things equal, will result in more foreclosures in the future.
The problem as of late hasn’t been that people can’t get loans, it’s that they are having trouble paying back the loans they have. Extending the government guarantee to larger loans is just another way to make taxpayers cover the cost of defaults.
What I think is amazing are all the snakes who have been waiting for a housing crash for the past 8 years.
More than likely, the same ones criticizing the information given in this lady’s blog.
Although I agree that there has been a brutal amount of predatory lending, ignorant buyers, realtors, and everything in between, the solution should not be “everyone for themselves.”
The chances of Ubersalad being a predatory BUYER are very good, and his comments should be taken as such.
I do not agree with a bailout either, but I also don’t agree with banks, other lending institutions killing the hopes and dreams of so many.
It sounds like Ubersalad can’t wait for this to happen.
Hank, I would like to see conforming loan limits set by county instead of a national average. This seems to work fine for FHA.
JoeBlow,
your comments are much appreciated. I’m receiving emails from people all over the country who are suffering in their mortgages. Their stories are all very different…some of them know they overstated their income and we all know what’s happening to them now…some did not have their option arm explained to them and they signed away thier home anyhow.
I don’t want to see anyone lose their homes. I feel badly for those I cannot help (out of state or LTVs to high/credit scores too low).
I’m thankful that I steered clients away from option ARMs and stated income loans.
I made comments about bailout and somehow I am being identified as a snake who’s trying to pick up properties?
I have been in the lending/real estate industry for past 5 years, and I have done my share of contribution to the industry (I have created the only fully translated website with more than 50 real articles into another major language).
With that said, my opinion is that the “happening” that is taking place is indeed a bailout. If it walks like a duck and quacks like a duck, it is a duck. I am not attacking Rhonda to begin the comment, but like I said, she’s so used to be attacked, she took the defensive stance right off the bat.
Raising the conforming limit is essentially the same as lowering jumbo rate, and raising the conforming limit sounds like it’s also using FNMA and FHMC to strengthen this bailout. One of the biggest factors in the recent real estate boom was the historic low interest rate. By keeping the rate low, it’s offering consumers opportunity to REFI (bailout), and other consumers to buy the inflated homes (bailout).
Lowering jumbo rate is offering overpriced houses and their overqualified borrowers to do the same, REFI or sell, which are still bailouts.
So my question once again is…”Do you really think bailout is the solution?”
Seriously, if you’re truly a professional, do I need to spell out everything?
Ubersalad, how is this not an attack:
“Seriously, if you’re truly a professional, do I need to spell out everything?” It’s rude at the very least.
And your question: “Do you really think bailout is the solution?” Is implying that I think a bailout is the solution. You’re not asking “what do I think of raising the jumbo rate”. It seems to me you’re trying to put words in my post or spin it as if I’m for a bailout.
Ubersalad, I’ll ask my question once again (see comment 2).
I assumed you’re a professional, and I assumed you understand why I think raising conforming limit and lowering jumbo rate is “bailout”.
“Ubersalad, where did I say anything about me being for a bailout?”
I guess you can’t follow where I am coming from without spelling it out.
I’d say it works fine for FHA because they’re low dollar value loans with stricter qualifying standards. If FHA is underwriting loans on homes priced 8+ times the local median income (as a $625K home would be in King County) not only is this a government bailout of the upper middle class but it’s encouraging people to take on unhealthy amounts of debt backed by uncle sam.
Since the KC median was around $400K in September, conforming loan limits of $417K are more than adequate to provide support to entry level home buyers. We don’t need higher conforming limits in Western Washington unless incomes start supporting these bigger loans.
I know this is your advertising portal and it is necessary for you to be politically correct in your comments.
I just didn’t see the need to dance around my comment and went straight to the point.
Ubersalad. I am a professional. I don’t attack people on blogs…especially under an alias. I stand by my name. You stating why you think raising the limits is a bail out is completely different than insuating what you think I believe.
I’m actually all for high interest rates since I believe in a strong dollar and low inflation even if it brings on a recession. I also believe home prices are seriously inflated and high interest rates will help speed-up the correction and short-duration pain is better than extended pain.
What I’m not for is the spread between jumbos and conforming rates. This spells lender fear to me. I’d rather see that the fear is handled by very strict qualifying rules than a “risk” premium. Proper down payments and documented sufficient income should not be punished with higher interest rates just because the home is expensive. Their are homes that actually are worth +600k after the current bubble excess has been removed.
Thanks, tj. I agree. If the borrower is well qualified, why should they have a significantly higher rate? A 20% down jumbo-buyer with excellent credit and job security full doc loan is less risky than someone who is squeaking in with no reserves.
I didn’t attack you until you take the “ignorant” approach. I guess I still assume you’re a professional, but that’s quickly changing.
You put yourself in the public eye by blogging, I didn’t and see no point in doing so.
Spread between jumbo and conforming has always been there, it’s not a new phenomenon and I don’t see the point of using that to change subject here.
Never mind, this isn’t about you and I can see that you won’t engage yourself by taking a side anyway.
My question is now directed to other readers, anyone else think this isn’t a bailout?
TJ,
I couldn’t agree more.
Ubersalad,
It seems to me Rhonda became defensive because you directly said something SHE did not say. She said nothing about bailouts being good, those were your words, and you obviously wanted to direct the blog towards your agenda.
I do like the idea of higher interest rates, as long as I am not paying them. So inflate away. I do disagree that people who can afford a jumbo loan should be punished with higher interest rates.
Ubersalad, please show me your previous blog posts about the REAL, obvious, and factual bailouts that this government has created. I hope you were as concerned about that as you are the housing market.
Once the government stops bailing out the Enron’s, Exxons, Worldcoms…stops spending a billion dollars a day on a war, and putting the entire country at risk to China and the rest of the world…we can focus on them “bailing out” overextended regular joe’s.
Ubersalad, I don’t take kindly to attacks…which you’ve just admitted to doing. You’ve totally missed my point. As a fellow “professional” I would expect that you would ask me what my opinion is. You’re assuming that I am for a bailout by how you’re phrasing your very first question. You go on to insult me throughout this thread. Why would I even want to engage in a conversation with you based on your tone with me from the start?
This serves as a reminder of why Ardell suggested closing rate posts.
Thanks again, JoeBlow. On that note, I am closing this post to future comments. There’s no sense in allowing Ubersalad to hi-jack it with his/her agenda.