Blog Post

The average interest rate on a 30 year fixed rate jumbo mortgage dropped to 5.79% two weeks ago, almost a 5 year low according to Informa Research Services of Calabasas. Jumbo mortgages refer to loans that are over $729,750 in the metropolitan statistical area and are over the maximum limits for Freddie Mac and Fannie Mae. The rate has since increased to 5.88% on Tuesday, but it’s still down from the 7% of late 2008. Rates are now even lower for hybrid adjustable mortgages, where the rate is fixed for a set amount of time before adjusting. The financial crisis resulted in Jumbo Mortgages rates increasing since lenders did not want to gamble on the higher risk of larger loans. Down-payment requirements for these loans are also relaxing; Wells Fargo Home Mortgage now is requiring a 20% down payment in Los Angeles County, which is 5% lower than last year. Jumbo mortgages still remain harder to get than before the financial crisis, but lower rates reflect the banks’ growing confidence in the housing market.

Via LA Times

Posted 26th February 2101 by Sally Forster Jones