Jumbo savings for jumbo mortgages
If you're in the market for an expensive home, now may be the time to buy. The Wall Street Journal reports that large home loans are at their lowest since 2003 - even lower than during the peak of the credit crunch:
Just a year ago, the average rate on a 30-year jumbo mortgage—a loan of more than $729,750 not backed by government-sponsored agencies Fannie Mae or Freddie Mac—was 6.86%, according to Greg McBride, a senior financial analyst at Bankrate.com. Now it is 5.48%—a rate that rivals those available during the height of the credit bonanza.
As expected, the number of applications for these loans has risen accordingly, so the question is, how long will this last? In fact, Manhattan, "the nation's most expensive large housing market," according to CNN Money, has seen a rise in sales this quarter from last year, and the median housing cost has already recovered half of the 20% it lost. It's hard to know how things are going to go, but it does look like it may be worth investing now if you're planning on it...
Any thoughts?
