Remember Jumbo Loans? They're Back!

Amid all the double-dip discussions in the housing market is an odd ray of hope on the high end.

With little to no fanfare, it appears jumbo loans are not only getting cheaper, they're getting easier to obtain.

After several years of stagnation in high-end housing, thanks to the disappearance of the jumbo market, things are moving yet again.

A quick check on Bankrate.com shows the 30-year fixed jumbo at around 5.50 percent, and Citibank last week reported applications for jumbos up 30 percent just over the last 60 days.

"It is the overall weak economy driving the 10 year lower, which is the proxy for most mortgage loans," says FBR's Paul Miller. "This is still probably the best of the best getting loans at these low rates, but Jumbo activity is still very, very low." Miller says it's good for the market, but only "marginally better," as banks are desperate to find good loans to put on their books.

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