Saturday, June 14, 2008

Jumbo conforming rates come down to earth GSEs, NAR urge extension of higher limits

By Matt Carter

Jumbo conforming loans eligible for purchase by Fannie Mae and Freddie Mac are now available at nearly the same interest rate as conventional, conforming loans, executives at the companies told lawmakers this week.

But the credit crunch is keeping rates elevated on jumbo loans Fannie and Freddie can't buy, and the government-chartered companies could lose their ability to buy mortgages above the $417,000 conforming loan limit at the end of the year if Congress doesn't act.

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