As home prices rise, the demand for jumbo mortgages is rising too. Since the housing crash...

As home prices rise, the demand for jumbo mortgages is rising too. Since the housing crash began, the market for jumbo mortgage-backed securities has been close to nothing. Banks still make the loans, but hold them on their books. Now, all that is beginning to change. The number of jumbo loans originated in Q1 was up 15% from last year. However the number of those loans securitized and sold by lenders has soared by 400%, with $4B worth of jumbo loans sold to investors thus far - which is more than the $3.5B in jumbos originated in all of 2012. (Video)

Comments (5)
  • SoldHigh
    , contributor
    Comments (991) | Send Message
    And we'll see if any of history's lessons have been received...
    10 Jun 2013, 08:08 PM Reply Like
  • EMS
    , contributor
    Comments (586) | Send Message
    Oh good. So the rates should come in then.
    10 Jun 2013, 08:20 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3121) | Send Message
    If history is to repeat, there is plenty of upside in this market before it blows off again. (cf. The Bernank on the nominal market high as a "nominal" target.)
    10 Jun 2013, 08:32 PM Reply Like
  • Teutonic Knight
    , contributor
    Comments (3786) | Send Message
    Perking up, and lit up like a wildfire.


    Man, never learnt!
    10 Jun 2013, 08:32 PM Reply Like
  • sl100
    , contributor
    Comments (112) | Send Message
    Institutions are buying up homes so that the MBS and derivates go up in value. This is 1000 times larger then then the home value. This what the trying to do here. Hoping to dump those derivatives they hold on mutual funds, pension funds etc. Soryy the MSM do not seem to highlight this anywhere.


    Also why is the govt allowing PE buy them so they can get tax free profits while home owner and other investors have to pay taxes on any gain if any.


    Also note that they doing this usual bubble areas where there hardly any growth. They renting only 50% of those homes. But whose money anway investors. The counties should property raise taxes in these areas to slow this down.
    10 Jun 2013, 09:08 PM Reply Like
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