As reported by Inman News, Bay Area buyers and owners may not get those lower jumbo rates they were counting on when President Bush signed the recent stimulus package that, among other things, raised conforming loan limits.
The Securities Industry and Financial Markets Association (SIFMA) just announced that these so-called “jumbo light” loans will not be allowed to be sold in the most important secondary market where mortgages change hands. This means pricing for these new loans are not established and initially could be priced higher by investors than the traditional conforming loans at and below $417,000. If lower rates do come for hopeful buyers and owners looking to refinance, don’t expect them very soon.
For those of us who didn’t think this stimulus package would have much of an effect anyway, this just provides additional fuel for that position.