Why only JUMBO 30 yr fixed rate goes up?

I think when Wells Fargo increased the rate from 6.875% to 8%, the main concern is that they THINK the long term interest rate will go up.

For the business perpective, compared to the ARM, 30 yr fixed rate program usually has lower return and higher risk for the banks.
For the Jumbo loans, the risks are even higher. So to protect
the banks themselves, they increased the rate a lot for the time being(which is not necessary at normal business environment). The rate may go lower in teh future when the turmoil settles.

所有跟帖： 

• 回复：Why only JUMBO 30 yr fixed rate goes up? -凌空长老- ♂ (947 bytes) () 08/08/2007 postreply 16:17:57

• agree -表情符号- ♀ (0 bytes) () 08/08/2007 postreply 16:21:52

• 中国政府就是笨。只会给别人送钱。买那么多BOND亏。买BX -pediatrician2- ♂ (12 bytes) () 08/08/2007 postreply 16:28:15

• 中国领导要多来'理财投资',至少该知道活钱死钱的道理. -thornbird888- ♂ (18 bytes) () 08/08/2007 postreply 17:12:25

• No, it's not 笨。It's a choice of no choice! -miat42- ♂ (0 bytes) () 08/08/2007 postreply 17:13:08

• 对也不对,很难说,还是有私心做怪的成分. -thornbird888- ♂ (0 bytes) () 08/08/2007 postreply 17:19:52

• 就是这个理，自己没有人才可以硬碰硬 -抛玉引砖- ♂ (0 bytes) () 08/08/2007 postreply 17:26:31

• conforming loan can be purchased by Fannie and Freddie -表情符号- ♀ (0 bytes) () 08/08/2007 postreply 18:08:21

• Because jumbo loans are bought and sold on a much smaller scale -表情符号- ♀ (0 bytes) () 08/08/2007 postreply 18:08:48

• Yes, lack of competition cause higher rate, no point to -miat42- ♂ (213 bytes) () 08/08/2007 postreply 18:12:35