When will Jumbo Mortgage Rates get better?

We are still seeing poor sales in the Tucson Luxury Home Market as Jumbo Market rates continue to be high over the last few months.

In Tucson, and the surroundings areas of Oro Valley, Marana and Vail, we have a large inventory of homes  that meet the over $417,00 cut off or Jumbo Loans.

 In order to get Luxury Homes moved in the market, I have been looking around for alternatives for people to obtain financing for my clients.

The general public obviously seems to be reticent to buy with rates from 7% up in to 9% range, and it seems that if one could obtain a good loan product, it would be a great time to buy with a large amount of inventory in the Tucson market.

Prices have adjusted down, but there is still a good amount of inventory especially in the over $1,000,000 price range.

Although some of the programs that I have found in Tucson to get jumbo financing require 25% down, there are some  5 in one ARM products out there that can help people get financing right now with better rates around 5.5 %.

My concern is how long will they be there? Over the last few week several programs have gone away.

This is not helping a large inventory of homes that meet this criteria to get sold.

A stimulus in this section of the market with Jumbo Mortgage Rates would have been great, but in this current situation, we seem to be focusing on FHA loans only at the moment and those loan products under $417,000.

As Charles McMillan, president of NAR, recently said in a statement  about the new stimulus package, a housing stimulus package is needed to spurr an economic recovery in this country .

He said in a statement:

"We need more than low interest rates to encourage enough buyers to enter the market and meaningfully draw down inventory, which would stabilize home prices-that, in turn, would help the economy to recover. We should extend the first-time buyer tax credit to all homebuyers and eliminate the repayment feature, and make permanent the higher loan limits that are vital in high-cost markets-the faster we do this, the faster housing and the economy can recover."

 

Anne and Eddie McKechnie

Tucson Real Estate Experts

Coldwell Banker Residential Brokerage

Tucson Az 85718

Visit us online at http://thetucsonexperts.com