Jumob Mortgage Rates Fall To 2-Year Low

Jumbo mortgages are very big mortgages. That's why they are called jumbo. The jumbo mortgage rates have traditionally been higher than the average mortgage rates because they are too large to be purchased or guaranteed by Fannie Mae and Freddie Mac. They naturally carry higher risk.

Bankrate reports that "since the onset of the credit crunch, the differential in rates has been significantly larger, well above 100 basis points instead of the typical pre-credit crunch level of 25 basis points. But jumbo mortgage rates have fallen to a two-year low of 6.52 percent, down from 6.76 percent two weeks ago and 6.99 percent on March 11. The rates are still higher than they would be in a normal credit environment, but with the slowly thawing credit markets the spread between conforming and jumbo rates has narrowed to levels last seen in Nov. 2008."

Mortgage rates are still at all time low leveles, but home buyers complain that lending and loans are very hard to get and not easily available. About 6 months ago, the average 30-year fixed mortgage rate was 6.32 percent, meaning a $200,000 loan would have carried a monthly payment of $1,240.55. The situation is different now. The monthly payment for the same size loan would be $1,101.93, a savings of nearly $140 per month for a homeowner refinancing now.

Housing and lending industries see mixed mortgage rates this week. The average 30-year fixed mortgage rate inching upward to 5.23 percent. According to Bankrate.com's weekly national survey, the average 30-year fixed mortgage has an average of 0.47 discount and origination points.

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