Jumbo mortgage rates fall as Treasury bonds take a breather

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The average rate on a 30-year jumbo mortgage fell to 3.44 percent this week, joining most other home loan products in losing a few basis points. The 15-year fixed average stood out among the most common loans by gaining one basis point in interest on average.

jumbo mortgage, also known as a non-conforming loan, is one that exceeds the maximum value of financing that can be sold to Fannie Mae or Freddie Mac. In most areas of the country, you’ll need to get a jumbo mortgage if you’re planning to borrow more than $548,250 toward your home purchase. In more expensive areas, that threshold jumps to $822,375.

Whether you need a jumbo mortgage is determined by how much financing you’re requesting, not by the actual sale price in your transaction. You could get a conforming loan on a multimillion dollar home if your down payment makes up the difference between the price and the jumbo mortgage threshold.

Across the board, mortgage rates have been on an upward trajectory for most of this year, as the coronavirus recovery keeps pace and life slowly gets back to normal. Even so, the trend has not been constant week-to-week, and some weeks have favored prospective homebuyers and refinancers with lower rates.

Most experts in Bankrate’s weekly poll expect mortgage rates to remain fairly stagnant in the week ahead.

“The relative calm in the 10-year Treasury market should lead to relative calm in the 30-year mortgage market,” said Ken H. Johnson, a real estate economist at Florida Atlantic University. “Long-term mortgage rates should remain unchanged this week.”

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Written by
Zach Wichter
Mortgage reporter
Zach Wichter is a mortgage reporter at Bankrate. He previously worked on the Business desk at The New York Times where he won a Loeb Award for breaking news, and covered aviation for The Points Guy.
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