At the same time, the premium for jumbo loans of over $625,500 in San Francisco has ticked down to a six-year low, an average of only 0.16 percentage points over conforming rates as deposit-rich banks seek returns on their capital and suppress rates to compete for wealthy customers.
In fact, Wells Fargo is advertising a 4.5 percent rate for both conforming and Jumbo 30-year fixed mortgages as of this morning, a discount to the 4.625 percent rate they’re advertising for super conforming loans of over $417,000 in high cost areas like San Francisco.
∙ 14 Percent Raise Needed To Keep Pace As Mortgage Rates Rise [SocketSite]
∙ Mortgage Rates Reverse Course and Tick Down [Freddie Mac]
∙ Wealthy Americans Benefit From Banks Hunting Jumbos [Bloomberg]