Agency Jumbo Pricing Finally Looks Attractive

In the past couple of weeks, mortgage rates associated with the increased conforming loan limits have fallen dramatically. Those rates, previously 100 basis points higher than traditional conforming loans, are now low enough to offer some relief of the type intended by the authors of the Economic Stimulus package. Housing Wire takes a deeper look into this for those who wish to check it out.

Overall, this relief may have occurred too late to help some Sacramento homeowners, where home values have declined so quickly that refinancing is now only a dream fading in the light of this new day. But for others, it may have arrived just in time.

Conforming rates have been flat, hovering around 6.10% at half a point according to Freddie Mac’s weekly survey. With a steepening yield curve, consumers can save shave a half point off their rate by taking a 5/1 ARM, but there aren’t many takers right now given the risk/return ratio.