Interest rates & jumbo loans??

[Chickpea]

By all accounts the Fed in about a week will lower interest rates by possibly 0.5 or more of a point - I am curious about how does this affect jumbo loans? Do they see similar decreases? Or less?

Would appreciate the feedback. Thanks

 

[Little Fish]

Chickpea:

Fed just lowered FF's by 75 bps.... Watch rates today in the jumbo market to see what happens. As I understand, the jumbo market doesn't move in lock step with conforming mortgage rates. Additionally, you have to consider the product.

We'll probably all hear from mortgage brokers shortly given today's Fed announcement.

Little Fish

 

[spinDrAtl]

Conforming rates don't move in lock step with the Fed either. The bond market's reaction moves the conforming rates. So far today, conforming rates have improved based on the move in the bond market, mainly the 10 year.

 

[Buckhead Rick]

just received a printout of Citi's rates and they are within 1/4 point of what I got back in 2003, Jumbo 7/1 libor 4.625 w/ 1 or 5.25 w/0.
7/1 ARM 4.75 w/ 1 or 5.25 w/0
No one knows if the Fed will reduce again, but it's better than even money they will.
With few new homes being built and coming on the market this might help reduce current inventory. Hope Hope Hope.