sunday subprime saviour meltdown, page-20

It's total bull$%#@ that the problem is only subprime....maybe if you read your local papers.

The spread between 'conforming' loans i.e. those below $417K and those above use to be .25% rate but due to the perceived increase in risk for 'jumbo' loans it's jumped to .75%.....this means ppl buying more expensive homes are getting slugged a higher rate.

I.e. the buying power for people looking to buy a luxury home are being slashed. I know a few ppl in NY city where some of the luxury more well of suburbs are cutting prices about 15% off what they could have got 6-12 months ago....(i.e. $3 million house now selling for between $2.0-2.5 million).

This impacts not just people who can't afford their repayments but people with perceived weath as well