The real reason the new junbo conforming loans are not selling is that the banks raised the jumbo rates to 200bps and slipped in the jumbo conforming into the void at 100bps - where the jumbos used to be. So its not a new product at all really. If banks put the jumbo conforming rates closer to or at the conforming rate, the tons of people waiting to pounce on re-fi will do so and the new program will be a huge hit. Remember, the new limit program is in areas where these houses are still close to the median price for a home - not the McMansions - just the average houses in these areas. The loans on these houses should not be that much riskier than loans to average houses in other not-so-expensive areas.