New Super Conforming rates hitting the market

[sdrealtor]

I just spoke to a loan rep and there was a huge rate reduction today on the new “conforming jumbo” program ($417,000 to $697,500). Currently we are at about 6.625% with zero points, and 6.125% with one point.

Wonder if that will change anything in the North county Coastal market that has been stuck for the time being.

[an]

I wonder if this will affect areas that are current right below the old $417k conforming limit. My thinking is there are people who couldn’t afford 450-600k house before due to rates, so they settle for $350-450k instead. But now that they can stretch, the demand would drop for the 350-450k range because they now can stretch to 450-600k. So for the low end of NCC ($450-600k), this might have a positive affect, but the $350-450k market might see a decrease? That’s my guess.

[an]

I wonder if this will affect areas that are current right below the old $417k conforming limit. My thinking is there are people who couldn’t afford 450-600k house before due to rates, so they settle for $350-450k instead. But now that they can stretch, the demand would drop for the 350-450k range because they now can stretch to 450-600k. So for the low end of NCC ($450-600k), this might have a positive affect, but the $350-450k market might see a decrease? That’s my guess.

[an]

I wonder if this will affect areas that are current right below the old $417k conforming limit. My thinking is there are people who couldn’t afford 450-600k house before due to rates, so they settle for $350-450k instead. But now that they can stretch, the demand would drop for the 350-450k range because they now can stretch to 450-600k. So for the low end of NCC ($450-600k), this might have a positive affect, but the $350-450k market might see a decrease? That’s my guess.

[an]

I wonder if this will affect areas that are current right below the old $417k conforming limit. My thinking is there are people who couldn’t afford 450-600k house before due to rates, so they settle for $350-450k instead. But now that they can stretch, the demand would drop for the 350-450k range because they now can stretch to 450-600k. So for the low end of NCC ($450-600k), this might have a positive affect, but the $350-450k market might see a decrease? That’s my guess.

[an]

I wonder if this will affect areas that are current right below the old $417k conforming limit. My thinking is there are people who couldn’t afford 450-600k house before due to rates, so they settle for $350-450k instead. But now that they can stretch, the demand would drop for the 350-450k range because they now can stretch to 450-600k. So for the low end of NCC ($450-600k), this might have a positive affect, but the $350-450k market might see a decrease? That’s my guess.

[sheilawellington]

Unfortunately these policy changes will slow down the reduction in prices that we expect. Of course, many of the new borrowers will become FBs, banks will lose money, or rather, Freddie and Fannie will.

Then the Fed will have to bail them out and print more money in the process… I can only see inflation increasing at high rates in ’08 and beyond.

Raising the conforming limits will come at a cost. We’ll pay for it.

[sheilawellington]

Unfortunately these policy changes will slow down the reduction in prices that we expect. Of course, many of the new borrowers will become FBs, banks will lose money, or rather, Freddie and Fannie will.

Then the Fed will have to bail them out and print more money in the process… I can only see inflation increasing at high rates in ’08 and beyond.

Raising the conforming limits will come at a cost. We’ll pay for it.

[sheilawellington]

Unfortunately these policy changes will slow down the reduction in prices that we expect. Of course, many of the new borrowers will become FBs, banks will lose money, or rather, Freddie and Fannie will.

Then the Fed will have to bail them out and print more money in the process… I can only see inflation increasing at high rates in ’08 and beyond.

Raising the conforming limits will come at a cost. We’ll pay for it.

[sheilawellington]

Unfortunately these policy changes will slow down the reduction in prices that we expect. Of course, many of the new borrowers will become FBs, banks will lose money, or rather, Freddie and Fannie will.

Then the Fed will have to bail them out and print more money in the process… I can only see inflation increasing at high rates in ’08 and beyond.

Raising the conforming limits will come at a cost. We’ll pay for it.

[sheilawellington]

Unfortunately these policy changes will slow down the reduction in prices that we expect. Of course, many of the new borrowers will become FBs, banks will lose money, or rather, Freddie and Fannie will.

Then the Fed will have to bail them out and print more money in the process… I can only see inflation increasing at high rates in ’08 and beyond.

Raising the conforming limits will come at a cost. We’ll pay for it.

[barnaby33]

Red herring alert. You still have to have a fat down payment for conforming loans. Fat is defined as 20%. I can barely scrape together 20% on 400k. Raising loan limits isn’t going to change that.

Josh

[barnaby33]

Red herring alert. You still have to have a fat down payment for conforming loans. Fat is defined as 20%. I can barely scrape together 20% on 400k. Raising loan limits isn’t going to change that.

Josh

[barnaby33]

Red herring alert. You still have to have a fat down payment for conforming loans. Fat is defined as 20%. I can barely scrape together 20% on 400k. Raising loan limits isn’t going to change that.

Josh

[barnaby33]

Red herring alert. You still have to have a fat down payment for conforming loans. Fat is defined as 20%. I can barely scrape together 20% on 400k. Raising loan limits isn’t going to change that.

Josh

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