“When 10-year Treasury yields rise, so too do the rates for mortgages that are being packaged into mortgage-backed securities,” says Greg McBride, Bankrate’s chief financial analyst. “Jumbo rates are less dependent on secondary market pricing because they aren’t packaged into mortgage-backed securities as often.”
What’s more, jumbo lenders tend to be quite picky about the creditworthiness of jumbo borrowers.
“The jumbo loans we are doing are all stronger borrowers – high FICO, lower debt to income and loan to value and high reserves,” says Jim Sahnger of C2 Financial Corp. in Jupiter, Florida.
