13 Apr 2022
Buyers of Expensive Homes Receiving Lower Mortgage Rates in the U.S.
The Index Today
Even as mortgage rates continue to surge in the U.S., prospective homeowners looking to purchase high-priced property are reportedly receiving cheaper mortgage rates from banks and mortgage firms.
According to Bloomberg News, information obtained from Bankrate.com from 1998 shows a 4.48% rate for a 30-year fixed jumbo mortgage when compared to a 4.95% interest rate for a traditional loan, which places rich loan-seekers at a significant advantage. This comes in stark contrast to when jumbo mortgage rates were nearly a half percentage point higher than lower mortgages during the beginning of the pandemic.
Bloomberg News reported that in most parts of the U.S., jumbo loans have surpassed the conforming loan limit of $647,200, even as the more expensive cities of New York and San Francisco place figures above $970,800.
Bankrate.com’s Chief Financial Analyst Greg McBride said, “If there’s a silver lining for homebuyers that find themselves taking bigger loans as home prices have soared, it’s that jumbo mortgage rates are actually lower.” He added, “It’s another indication of the uniqueness of this mortgage market.”