Mortgage Rates Stable? Jumbo ARM’s, Jumbo Mortgage Rates, and Jumbo Delinquencies
By: Bruno Mckenzie
I missed you guys yesterday. Trust me, I would of rather been at my desk writing my column then explaining to the book why I bet money I didn’t have on the Colts. Since when did they start collecting on Monday’s? I came out of it 
with some light bruising and a payment plan. Everybody I’m ok! Thanks for the emails and kind words. What are you gona’ do? Stop bettin’? You can’t pick em’ right every time.
Mortgage rates seem to be cemented at current levels. Since declining to 4.75% 30 year fixed mortgage rates both FHA and conforming have held. Mortgage rates aren’t moving despite big stock market swings, an unsettling political atmosphere, mixed employment data, and policy changes by the FED, the whole 9. That leads us to believe mortgage rates are pretty stable under 5%. I’m not making a mortgage rates forecast, but I don’t expect mortgage rates to jump a 1/4 point in a day unless North Korea launches a nuke so I’m goin’ with stable under 5 as my assessment. Read more on current mortgage rates here.
NEW: Search Local Mortgage Rates
Jumbo Mortgages
I’ll cover jumbo mortgage rates and delinquencies in the next paragraph, but I want to mention an excellent article I read by Jeff Bowman of http://www.thegreatloan.com/ for FreeRateUpdate.com in which he talks about game planning for an adjusting jumbo arm. When a jumbo mortgage resets the larger loan amount makes the payment increase that much more. It’s not easy to secure a jumbo mortgage right now for many reasons that Jeff discusses and for that reason it’s time to start game planning now for your loan that adjusts in the future. Either game plan now or face losing the game. Read the full story here.
Now when you talk mortgage rates you gota’ talk FHA mortgage rates but what about jumbos? Seems to be lost in the mix today. A report from Fitch Ratings shows jumbo mortgage delinquencies rising fast and almost to 10%. Holy mackerel. One out of 10 homeowners with a prime jumbo mortgage are seriously late. Seriously late refers to 60 days down. I explained yesterday in a piece ( I am currently studying the secondary market) why rising jumbo mortgage delinquencies may be affecting jumbo mortgage rates. Jumbo mortgage rates are a full percentage point higher than FHA and conforming mortgages. Read the full story here.
Show to the hour jumbo mortgage rates on your website or blog using FreeRateUpdate.com’s new jumbo mortgage rates widget.
I’ll ice my bruises and get some rest and talk to you tomorrow morning when I’m more myself, after midnight of course.
Catcha ya’ later,
The Real Bruno Mckenzie