The average rate on a 30-year jumbo mortgage stayed put at 3.37 percent this week, even as other loans saw their interest rates rise. That jumbo’s lack of movement means high-dollar loan holders are at an advantage when it comes to refinancing or getting a new mortgage this week, but upward pressure in the rest of the market likely indicates that a jumbo rate rise is imminent.
A 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, that limit is $548,250, but the threshold jumps to $822,375 in more expensive areas.
The need for a jumbo mortgage is entirely determined by the amount of financing required, not the sale price or total worth of a home. You could get a conforming loan on a multimillion dollar property if your down payment makes up the difference between the price and the jumbo mortgage threshold.
Mortgage rates had been in retreat for the previous five weeks, though most experts expect them to trend higher as the coronavirus recovery continues and life slowly gets back to normal. Most industry watchers expect mortgage rates to end the year generally up, but still low by historical standards.
Near term, most experts in Bankrate’s weekly poll said they expect mortgage rates to rise in the week ahead.
“Concerns about inflation are rattling investors and will drive bond yields and mortgage rates higher,” said Greg McBride, Bankrate’s chief financial analyst.