“Usually, the jumbo rate is about 25 basis points higher than the 30 year fixed rates,” Thorpe said. “During August, it was a whole percentage point higher. They’ve since come down.”
Jim Richards, president of Futurehome Systems & Design, a 17-year-old custom integration business, was watching the housing slump, the subprime lending crisis and the jumbo rate hikes ripple through his market of Fresno, Calif.
“It’s definitely the most radical flip-flop we’ve experienced in 17 years,” he said.