回复：Why only JUMBO 30 yr fixed rate goes up?

"The rate may go lower in teh future when the turmoil settles." I agree with this statement. However, the risk is still pretty high that it may stay high for a long time.

About 4 to 5 years ago, I routinely bought and hold mortgage backed securities issued by Fannie Mae, Freddie Mac, and Ginnie Mae. But I haven't bought any new issues in the last 3 years because of the concerns about housing bubble. Now people are scared away by the implosions in the secondary mortgage market, the banks have to raise rates and tighten lending standards to lure them back. If the big buyers of mortgage backed securities like the Chinese government decide to stay away from this market because of the recent losses they suffered, it could take a long time for the market to recover. Therefore the high rate environment may stay longer than people expected. As a result, the RE market in expensive states such as CA, NY, NJ, MA, etc. may suffer more.