Time.com reports that conventional mortgage rates are moving up, and becoming equal to rates for jumbo mortgages.
In times past, conventional mortgage rates were 0.2 to 0.3 of a point below jumbo mortgage rates. But today, rates are about the same for both conventional and jumbo home mortgage.
“Rates for a conventional 30-year fixed mortgage are averaging 4.48 percent, according to Bankrate. For “jumbo” mortgages — those above $417,000 in much of the country — the average is 4.47 percent,” Time reports.
Read the Time article: A Fading Middle-Class Perk: Lower Mortgage Rates.
This trend reflects the widening wealth gap between the richest Americans and everyone else. Bankers now view jumbo borrowers as safer and shrewder bets even though conventional borrowers put less capital at risk.
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