Remember that for ALL borrowers the rates on Jumbos have gone up quite high. This makes a SIGNIFICANT impact on affordability. And just because someone qualifies for a loan doesn’t mean they necessarily want to stretch that much, especially in this market. Nobody is going to pay 50% of thier paychecks on a loan anymore and the thought of a 8% interest rate on such a large loan is not appealing to most buyers!! That type of thinking has passed because RE is now viewed as a depreciating asset.
