The average rate on a 30-year jumbo mortgage fell to 3.37 percent this week, keeping pace with much of the rest of the home financing market, which has seen interest rates receding for the past five weeks. That trend makes it a great time to consider refinancing if you’re hanging onto an older mortgage.
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 jumps to $822,375 in more expensive areas.
Whether you need a jumbo mortgage is determined by how much financing you need, not the total value of the 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.
Mortgage rates have been mostly higher this year as the coronavirus recovery continues and life slowly gets back to normal. Most industry watchers expect mortgage rates to end the year higher and pointing upward, but still low by historical standards.
Meanwhile, most experts in Bankrate’s weekly poll expect mortgage rates to stay put in the week ahead.
“Long-term mortgage rates will remain virtually unchanged. 10-year Treasury yields have been remarkably stable for the last two weeks holding between 1.50 percent and 1.675 percent,” said Ken H. Johnson, a real estate economist at Florida Atlantic University. “This stability should translate into minimal movement in long-term mortgage rates.”