Jumbo Mortgage Rates Continue Downward Trend March

This article first appeared on The Motely Fool:

In all, mortgage rates remained relatively stable again today. One notable exception is the rate for a jumbo mortgage — a loan amount above the “conforming limit” set by the Federal Home Loan Mortgage Corporation (Freddie Mac) and Federal National Mortgage Associate (Fannie Mae), which is generally a loan of $417,000 or more — which dropped 0.25% overnight.

The number of affordable homes for sale is declining, which resulted in a 7.7% jump in home prices last month compared to a year prior. Based on the lower jumbo rates, it seems lenders realize that to help the average home buyer overcome the higher prices, they need to reduce the larger loan prices.

As for the remaining loan types, most were little changed, if at all.

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