(h/t Patrick.net)
Wells Fargo 30-year fixed jumbo loans rates just went up through the roof! APR is up to 9.2%. Never seen this kind of rates the last 4 years. Hello? The rate. That's a 'statement' right there. Banks are telling everyone that they wanted to stay away from making long-term commitment. Too risky to go on their own. Since loans under $729k cuddled up in the Feds' arms. Above that: they're on their own. Another thing: What kind of investors want to buy up debt obligations, the so called "mortgage-backed securities?" The Saudis have already said 'see you later, my friend.' And the Chinese - won't come to the rescue, either.
After all. We, the taxpayers, don't want to be the one to pick up the tab for (another) other people's $ trillion mortgage mistakes, do we?
The 9% rate is not going to play well with homes priced above $729k range (those million dollar homes) market, especially in the middle of US financial meltdown. Those buying million bucks home - no reasons to go fixed anymore. What's the point?
I could see listing agents toughen up their clients (sellers) to be 'reasonable' when it comes to pricing the home because of financing situation.
