Good News for Agency Jumbo Conforming Financing- Stimulating the Bay Area Purchase Market
Late last week lenders began pricing the new "Jumbo Conforming" loans as if they were the same as the usual Conforming loan.
The "Conforming Loan"- Is a loan up to $417,000 that was the standard before the economic stimulus package was introduced earlier this year.
The "New Jumbo Conforming"- is a loan limit that is $417,001-$729,750 scheduled to remain in effect through 2008.
So what we have to look forward to is a stimulus in the Bay Area housing market. This should help finance home that was otherwise sized due to the lack of standard jumbo financing. Last week the average jumbo conforming rate that I was seeing through financing companies such as Chase, Wells Fargo and IndyMac's was 5.875%-6.250% up to $729,750...WOW. The Tri Valley should see the impact of the interest rate help in the very short term.
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