Jumbo loan rates

Yes, Wells fargo and Chase, who are our major competitors have 30 year fixed jumbos that are very, very high. We have been pretty volatile with our jumbo 30 and 15 year fixed rates. I dont agree with posting rates because of its volatility and the fact that every borrwer is different. Last few weeks its been ranging from the low 6% range to the low 7% range.

I think it is just Countrywide/ Bank of America's decision to write jumbo mortgage loans and Wells fargo's decision not to want them. If you dont want a certain type of loan, then you just price it out of the market.

Timing is key in locking in rates. On any given day they can drop or skyrocket. If you are in contract and havent locked in, it is best to just get an application in (should be no cost) with the bank and time the lock with the loan officer. Especially when and if the jumbo rates drop into the 6's.
sunny_hong@countrywide.com

Are the rates for condos and for co-ops the same?

Yes, for us, jumbo rates for coops and condos are the same.

Thanks shong.

Anyone care to share rate info?

Rates vary from loan amount to credit to down payment. You can feel free to email me and I will give you rate information. Please share with me your purchase price, loan amount, credit, condo/coop, and name/address of building. Thanks. sunny_hong@countrywide.com

Those Wells Fargo jumbo rates are just brutal. But as Sunny says, it means they just don't want to offer that product and you need to look elsewhere. Based on my past experience I would be surprised if Chase was anywhere near that level for someone with good credit. However, my past experience all predates the credit implosion and therefore may not be worth much.

Bump.

I'm looking for an apt with a purchase price of about $1.3 w/ $400K down payment, so need a $900k mtg.

Anyone have an idea of rates & who's lending?

Thanks

I have always liked working with HSBC. Their site updates rate info. daily.

dwell - any chance you can drop your purchase price and still get what you need? At 1.1M, with a $400K down payment, you'd be under the temporary threshold for Jumbos.

dwell - there are still plenty of lenders. Rates just arent great right now. We have pretty competitive jumbo rates. email me at sunny_hong@countrywide.com and I can put you on a ratewatch list.
tina24hour-please note the new agency jumbo conforming loans are ending earlier than the 12/31 deadline. Chase and Wells already are stopping those on Dec. 1. We may go an extra week or so.

Why have rates gone up so much in the last week - especially with the FED rate cut? Will they go down again soon (guesses, please)?

"especially with the FED rate cut?"

-Nothing to do with Mortgage rates...not sure why people think this....

"Why have rates gone up so much in the last week"

-MBS investors demanding more yield since they can now purchase several other fixed income assets that are also guarnteed by the gov't paying higher yields (Bank debt for one)...unattended consequence of bailout that will not right itself anytime soon...higher rates are here to stay for a bit

"especially with the FED rate cut?"

YES, especially since the FED are hell bent on inflating out of this mess! When inflation rockets up (thanks to the FED), we'll see double-digit mortgage rates

shong - That's what I've heard from other lenders as well. But if a buyer can move quickly, is there a chance he can still qualify in time?

That unintended consequence, if in fact true, is a disaster. Higher mortgage interest rates will not help spur new sales in the housing market, and that is one key factor in any version of an economic recovery (even if buying happens at lower prices).

I just did some research and, yes, there is no direct tie between the FED rate and mortgage rate, however, historically, those rates (the FED discount rate and mortgage rates) have tracked each other. With that said, they have not tracked each other for the past two years, so I see why some would say they have nothing to do with each other now.

http://www.frbsf.org/education/activities/drecon/2002/0206.html

The bailout has created one big mess - was probably necessary, though I don't like this unintended consequence, and I'm sure there will be more of those.

triplec, also investors are unwilling to touch much of any mortgage product that's not backed by the full faith and credit of the US Government. As garelj mentioned, there is now a ton of competing paper with US Govt. backing and jumbo mortage backed securities are not one of them.

Foreign investors (China, UK, EU, Russia & so forth) were also huge investors in US mortgage loans for the past several years and their purchases kept mortgage rates lower that they would otherwise have been. Due to this financial fiasco, they no longer have an appetite for these investments and are more likely reduce their vast holdings than to add.

Corporate Bonds (Investment & High Yield) the next victim (just take a look at the average yields shooting up).....these will start sounding the alarm over the next few weeks when non-financials cannot rollover their Med and Long term debt....then the Gov't will have to make another choice....

If they do anything to "backstop" these you can forget low Mortgage rates forever as there will be a buyers strike on any MBS since there will be other options that are more attractive and MBS yields will have to increase to match these other options making rates shoot up...

And then there is the massive Treasury Issuances taking place because of our massive deficit hiking up the yields on Treasuries....i dont want to scare anyone but this will be a 2009 Q1 issue that dwarfs everything else...

We wont be worrying about Mortgages then....

garelj, I'm also concerned about Treasury rates shooting up in the next year as the Feds float $2-$3 of trillion to finance this fiasco which can take all rates up with it. That sort of funding will require an unprecedented amount of savings to fully absorb this supply and only time will tell the interest rates that will be required to get the auctions done. This size of govt funding is also a huge sucking mechanism for savings that might have been deployed in far more productive areas of the economy.

Corporate bond yields have sky rocketed which makes it historically expensive for corporations to fund expansions. It seems that the US Govt. is not only the lender of last resort but perhaps the only significant lender at this time.

What a fricking mess!

Rates are a mess now. I always get a million inquiries after the fed meeting about how the fed cut rates, asking why their rate hasnt changed. As garelj mentioned, the fed funds rate do not affect mortgage rates. It directly affects other loans, home equity, and such but not mortgages. Looking back on this year, I dont remember rates ever being so volatile as it has this year. But when rates have gone up, it came back and then go back up. I think we will continue to see this cycle.
tina - as far as the agency jumbo conforming. We are ending ours on Dec. 10. We should be hearing about the new conforming limits and its guidelines in about a month or so. Will keep everyone posted.

Thank you tina, eah & shong & everyone else.

double digit mtg rates?????? hells bells.

I'd love to reduce the purchase price so that the mtg is conforming, but then, I won't be able to get what I want.

For the past few yrs, the NYC apt purchase market has been & is a b*tch. Prices were high, but rates were low; now, prices are dropping, but rates are rising. Just can't win.