Jumbo mortgage rates rose this week as they did for most other home loans, though the average rate on these big-dollar products went up less than it did for some other kinds of mortgages.
In Bankrate’s weekly survey, the average rate on a 30-year fixed jumbo mortgage came in at 3.23 percent, up two basis points since last week.
A jumbo mortgage, also known as a non-conforming loan, exceeds the maximum value of financing that can be bundled for sale 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 to purchase a home. In more expensive areas, that threshold jumps to $822,375.
Whether or not you need a jumbo mortgage is all about how much money you need to borrow, not with the price of the property you’re planning to buy. 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.
A majority of mortgage experts in Bankrate’s weekly poll said they expect rates to move little in the week ahead.
“Rates have moved up significantly in the past weeks,” said Jeff Lazerson, president of MortgageGrader. “Time for a breather.”
Even so, most experts expect rates to trend upward overall in the weeks and months ahead.