Jumbo’s Coming Back?

G ood news on the Jumbo loan front, the first securitization since 2008 closed late this spring which may point to the beginning of a recovery in the higher price range for real estate. Until this $238 million dollar securitized deal was sold all jumbo loans had to be portfolio loans which banks are reluctant to do. This transaction, representing 255 loans, may have broken the ice in the private mortgage securitization market, which will open the gates a little and allow for more banks to enter this market, and therefore more loans available for higher end homes.

With 14 homes over $750,000 going pending over the last 6 months in Anacortes we have seen a huge uptick in this market locally. Those 14 pending in a six month span outpace the prior year which saw 12 going pending in a 12 month period. Good news seeing this upper end pick up as savvy buyers understand there are bargains to be had, and the cheapest money we will likely ever see in the mortgage market.