JUMBO LOAN RATES FALL

The government’s new tax credit program allows Fannie Mae and Freddie Mac to purchase jumbo loans mostly in high end markets such as Florida, California, and the Northeast. The provision states that both companies could start buying “super conforming” loans with a maximum limit of $729,750. The real estate market could already feel Freddie Mac and Fannie Mae’s entry into the high end housing markets, as Jumbo rates drop to approximately half of a percentage point. That means more borrowers can now obtain loans more easily and at lower, more affordable costs.