...bank portfolio mortgage loan rates show the true appetite by a bank to take on real estate and consumer exposure. These loans are submitted directly to the bank, underwritten by the bank, come with large down payments or significant equity in the case of a refi and are only available to perfect borrowers. In addition, they are totally secured by real estate! Jumbo mortgage rates being 500 to 600 bps above 10-year money and 700 to 800 above the funds rate show a mortgage credit market that would evaporate if the government was not in charge of 99% of its action through Fannie, Freddie and FHA.
--- reported by Barry Ritholtz, 12.10.08