Posted on 07/01/2013 12:56:22 PM PDT by whitedog57
Rising mortgage rates, rising home prices. What is happening to the jumbo-conforming loan spread?
In the fixed-rate market, the jumbo mortgage rate remains higher than the conforming mortgage rate. But the spread between the two has shrunk for the first time to early 2007 (and before) levels.
jumboconfrs
The jumbo-conforming spread actually began to increase in late 2007 and peaked in January 2009 at 184 basis points. It is now 28 basis points, below the average from 2000 to July 2007 of 29.5 basis points.
jumboconformigspread
On adjustable-rate mortgages (ARMs), the spread between jumbo ARMs and conforming ARMs is actually NEGATIVE, indicating that jumbo ARM rates (5/1) are lower than conforming ARM rates by 30 basis points.
armjumboconfsp
We have seen an improvement in home prices AND foreclosures since March 2012, particularly on the coasts where jumbos are more popular.
csfore
In the case of ARM rates, “The coast is the .. least.”
Your posts are really meaningless without the charts you steal yet claim to be the author of.
Is HTML a bit beyond your abilities, chart stealing notwithstanding?
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