money market

Jumbo Rates, Revisited

From (Big) Premium to Discount Three years ago — give or take — there was a HUGE premium for a jumbo mortgage (over $417k in most markets) relative to a conforming one. As I recall, the spread was something like 150 basis points. Translation:  when conforming rates were 4%, jumbo’s were at 5.5% — assuming...
Read More

Home Sellers, Renting & Opportunity Cost

Side Effect of Strong Rental Market, Miniscule Interest Rates For the vast majority of Sellers, threatening to rent if they can’t get their price is a bluff (see, “The Rental Bluff“). The exception to that? The owner of an older, dated home, with substantial equity, who doesn’t need the money for another home and isn’t about...
Read More