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What to make of the decline in the jumbo mortgage rate spread?

At face value, the decline in the spread of jumbo mortgage interest rates over the rates on conforming loans is one of a number of signs that restrictions on the availability of jumbo mortgages have loosened somewhat. Digging a little deeper, however, at least part of the explanation for the lower spread is that conforming mortgages themselves are being priced in a manner more akin to jumbo loans.

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