Jumbo mortgage rates are lower and Charleston luxury home sales are higher
One very good reason that Charleston luxury home sales are sharply higher this year is that mortgage rates for Jumbo loans (non conforming loans for more than $417,000 that aren't backed by government related entities - Fannie and Freddie) is that rates have finally gotten cheaper.
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There is still a lot of inventory available in higher priced homes and many buyers seem to think that now is a good time to buy because prices have come down somewhat and there is a feeling that good deals are available.
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Jumbo mortgage rates are now available from 5.75% to 6.00% for 30 year fixed loans, from 5.125% to 5.375% for 15 year fixed loans and from 4.375% to 4.625% for 5/1 ARM's according to a rate sheet that I received yesterday from one of my preferred lenders.
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The chart below clearly shows the rate spread between conforming and non conforming loans has started to narrow and Nick Timiraos writing at the WSJ has more. Look how wide the spread was in 2008 and the first half of 2009 and you can understand why sales of higher priced homes in Charleston was sluggish.
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