Jumbo mortgage rates shoot up

In a full-size surprise, non-conforming, of jumbo, home loan rates for a 30-year fixed took off just last week, climbing from about 6.875% to around 8%. Wells Fargo made the initial move and soon other lenders followed. Jumbos are loans over $417,000. Mortgages below that limit are called conforming and are routinely purchased by Fannie Mae and Freddie Mac, the two giant GSEs, or government sponsored enterprises.

Normally the spread between conforming and jumbo mortgage rates is from a half to three-quarters of a point, jumbo being the more expensive one. Please click here to read the entire article.