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July 25, 2008 7:11:50 AM CDT

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Mortgage Crisis Hits Affluent Buyers, Too

Posted Aug 7, 07 5:48 AM CDT in Business,  US 

(Newser) – Mortgage tremors have rippled so far across the home loan market that even buyers of high-priced homes with good credit records are now being squeezed, the Wall Street Journal reports. Rates have surged on loans above $417,000 for prime borrowers—to 7.34% for a 30-year fixed-rate mortgage, up from 6.5% in May.

The higher costs for so-called jumbo loans will further depress the real estate market. The credit crisis has crashed two hedge funds, put dozens of lenders out of business and triggered turmoil on global markets.  The crisis is also exacting a toll on individual families who no longer qualify for mortgages—or can't afford increased rates.

Source Wall Street Journal

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Realtors take a first look at a new $489,000 home going on the market, Friday, July 6, 2007, in Draper, Utah. Sales of new homes fell in June by the largest amount in five months as the housing industry...   (Associated Press)
A home for sale shows the owner has lowered the asking price, Tuesday, July 31, 2007, in Cincinnati. With the housing and mortgage industries plunging deeper into distress, investors around the world...   (Associated Press)
years. (AP Photo/David Zalubowski)   (Associated Press)
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subprime mortgages  • Bear Stearns  • mortgage  • hedge fund  • real estate  • Fannie Mae  • borrowers  • home loans  • loans  • houses


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