Borrowers may have found it somewhat more difficult to get a jumbo loan last month, according to the latest data from the Mortgage Bankers Association. The MBA’s Mortgage Credit Availability Index found that credit for jumbo loans tightened slightly in May. The MBA defines jumbo mortgages as home loans that exceed $417,000. For smaller loans, credit improved for borrowers last month, according to the mortgage index. The index analyzes data from mortgage technology firm Ellie Mae. Overall, the mortgage index—which contains four component indices—increased 0.5% to 122.6 in May, indicating better conditions for borrowers. But the jumbo-loan component decreased over the month, declining by 0.1%. “The reduction of the jumbo index indicates a slight reduction in the availability of jumbo (adjustable-rate mortgages) but isn't indicative at this point of any trend, and may just be an anomaly or a few lenders reshuffling their product offerings," said Joel Kan, associate vice president of industry surveys and forecasting at the MBA. Adjustable-rate mortgages typically have a lower beginning interest rate than a fixed-rate loan. They lock in the interest rate for a set period of time, typically 3, 5, 7 or 10 years, and then the rate can fluctuate based on movements in an index rate, such as the rate for Treasurys or the cost of funds index. Mortgage rates are at their 2015 peak with the benchmark 30-year fixed-rate mortgage rising to 4.03% from 4% last week, according to Bankrate’s weekly national survey of large lenders. The jumbo 30-year fixed mortgage inched lower to 4.06%. Adjustable rate mortgages were a mixed bag, with the 3-year ARM down to 3.17%, the 5-year ARM moving higher to 3.18% percent, and the 10-year ARM unchanged at 3.7 percent, according to Bankrate.
Read More: - Vancouver's International Appeal- Nine Figures and Counting- ‘Starchitecture’ Lures International Buyers to Downtown Miami