I think what ROCK was trying to say was that most people purchase with 30 day locks, so anything that funded/closed in August was possibly locked in July or early August before the jumbo fiasco.
Some of August loans could have been conforming amounts.
Lenders CAN come up with reasons not to fund, but they don’t make any money if they don’t fund it. A lock can actually mean a commitment for that borrower only, so it’s not like they can shift the funds elsewhere.
Funders and underwriters also get paid on actual closed loans. They aren’t looking for reasons to not fund a loan, they just need to be sure that their A is covered.
In July-early August, there were 5 YR fixed jumbos available at 5.75%,, now around 7% on that program.
The September number will be interesting.
There has been and remains no problem with conforming amounts of 417K or below. 30 YR Fixed are well below 6% again, but it isn’t helping those with no equity.
In many cases a 90% loan of 2 years ago is 100% today.
Even some 2005 80% loans are near 100% today.
The current market is a gas gauge that is running out of fuel, on E, sputtering along slowly until the final stop.
Nobody knows exactly how far the needle will go past E.
