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when will jumbo mortgage rates fall? In California specifically.

  • January 22 2009 - Dove Canyon
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Answers (3)

Best Answer

Don't expect Jumbo rates to fall much until the secondary market for this loan product returns.  Currently there is not an investor market and the lenders making jumbo loans must hold them in their own portfolio.  Just one more reason the housing market will be slow to recover in markets where Jumbo loans were the norm.

There are some rumors of an increase in conforming loan amount in the next round of bail out legislation coming.

Could be well into next year?  Harder to predict than where interest rates are going.
  • January 22 2009
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tomorrow
  • January 22 2009
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There are several portfolio lenders in the Jumbo category and they are competing for the business.  Rates reflect that and so do the terms.  By paying additional points you can even get well below 5%, based on your credit scores, income, and assets.  It's not going to get much better than that.
  • January 22 2009
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