While mortgage rates are pretty flat at the moment, at least some folks are starting to worry about the coming market for jumbo loans.
A change in the maximum loan sizes that Fannie Mae and Freddie Mac can buy (or that the FHA can back) is the culprit. It is only the first of what will be many changes in the market in the months to come.
UPDATE1: Congress approved keeping the jumbo conforming loan limit at $729,750 through 2010. We still think it was unnecessary.
The “resolution” is headed for the president’s desk where he is expected to sign it either today or tomorrow.
Despite our opinion that the combination of falling home prices and the narrow market which can take advantage of the higher loan amount made the extension unnecessary, the National Association of Realtors maintains their stance: Read the rest of this entry »
According to the latest issue of HSH’s Market Trends Newsletter, “Mortgage Rates Firm A Little,” a quiet week, economically speaking, helped foster the hope that perhaps “if nothing else, the worst of the downturn may be passing.”
“With millions of Americans still hitting the unemployment lines and various market troubles evident everywhere you care to look, it’s way too soon for outright enthusiasm — but perhaps not too early to allow hope to creep back into the national economic lexicon.”
According to the latest issue of HSH’s Market Trends Newsletter, “Home Mortgage Rates Creep Upward,” while there are several factors that have led to a rise in mortgage rates, the 10-year Treasury remains a factor at the forefront:
“Mortgage rates moved a little higher amid the raging “stimulus” debate. It seems to us that more than one factor is the cause behind the mild lift in rates, not the least of which are glimmers of hope amid the economic data.”
HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.
