Market Watch | Jumbo to $1,500,000 from 3.125% RATES!

Mortgage Backed Securities have been slaughtered the last couple of weeks.  The FNMA 30 Year 5.50% bond has fallen -187bp since February 7th when Richard Fisher announced the Fed was more than willing to continue cutting rates because they are really scared of inflation.  The bond market fallout resulted in 30 year fixed rates moving from the 5.5 range to the +6.125% today.

There have been some very positive changes in the last couple of weeks for one segment of the market.  Last year the investors ran for the hills when it came to Jumbo mortgages of all sorts.  Some of them have been coming back!

1/1 Libor I/O Jumbo | 3.125% [1%] | 4.000% [0%]

 3/1 Libor I/O Jumbo | 3.375% [3%] | 3.875% [2%] | 4.750% [1%] | 5.625% [0%]

5/1 Libor I/O Jumbo | 4.625% [2%] | 5.125% [1%] | 5.625% [0%]

7/1 Libor I/O Jumbo | 4.500% [3%] | 4.750% [2%] | 5.375% [1%] | 6.125% [0%]

10/1 Libor I/O Jumbo | 4.875% [3%] | 5.125% [2%] | 5.500% [1%] | 6.375% [0%]