A New First – Jumbo Rates Beat Conforming

A really weird thing has taken place in the lending world and has never occurred before, jumbo home loan rates have fallen below conforming loans attributed to government policy and banks with lots of money hell bent on lending because of reduced funding costs. The Mortgage Bankers Association reports that the 30-year fixed conforming rate was 4.73% while the average 30-year jumbo rate was 4.71% ending the week of August 30, 2013. This was the second consecutive week that the jumbo Fixed Rate Mortgage featured a lower rate than the conforming cousin. If the mortgage amount is above the $417K limit backing by Fannie Mae and Freddie Mac, it is defined as a jumbo mortgage.