The number of borrowers may shrink but the loans will still exist for the well doc’d people with decent downpayments, and yes they will pay more for a jumbo like they used to. Don’t believe the hype that there will no more loans over 417, just less of them. This will still damage the market prices, like taking 10% of the cars off the freeway and traffic get 50% better. Now as a buyer who has to pay a full point higher for a jumbo and you are comparing two houses near the jumbo mark, one might be only 30k higher but it takes your whole loan jumbo so the payment goes up significantly when comparing the two side by side, that will have an effect on the comps going the opposite way as the subprime thing did to prop up the comps by taking out the bottom of the market, I see median price taking a hit 90 days from now as a result, taking the industry’s last talking point away. We aren’t going to have to wait until 2012 for this to play out, I see the next nine to twelve months as worthy of pay per view status.