Upper Bracket Squeezed by Jumbo Bottleneck

At a time when some mortgage products are showing signs of life, jumbo mortgages are hard to get and expensive, making it difficult for many would-be move-up buyers to take action.

Minneapolis Association of Realtors (6/22/09)

Want a quick, simple handle on today’s housing market?

Take $417,000, the limit for conforming loans (vs. jumbo loans); then divide by 80% (that builds in a 20% mortgage, which is the typical threshold for avoiding mortgage insurance).

The result: low $500’s.

Below that threshold — especially well below, where first-time buyer incentives dominate — the Twin Cities housing market is doing OK.

Above, well, things aren’t so great.

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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