Jumbo Mortgage Rates

Since jumbo loans are bought and sold on a much smaller scale, they often have slightly higher interest rates than conforming loans, but the spread between the two varies with the economy. Also since jumbo mortgage loans are not bought and sold by Fannie Mae and Freddie Mac, the rates move on many different factors related to risk. As a general rule the jumbo mortgage rates will follow the action to the 10yr bond yield curve. When the bond yield moves lower typically mortgage rates follow. Conversely if the bond yield move higher mortgage rate typically move higher.

Bond yield movement can be followed through various financial web sites.
Click on the link below to visit CNN Money’s Bond Center.

http://money.cnn.com/markets/bondcenter/