Allen Wilkerson

• Historically, mortgage rates on jumbo loans are 0.2 percent to 0.4 percent higher than those on conforming loans, but the spreads since the onset of the credit crunch have been double or even triple that.

• The lack of available funds for loans, even for qualified buyers, has resulted in a dearth of buyers who can close on a home purchase.

• Successful passage in the U.S. Senate of the economic stimulus package proposed by the U.S. House of Representatives should positively impact the market as buyers who previously would have to take out a jumbo loan will qualify for more affordable conforming loans.

• The time a home remained on the market prior to selling improved to 67.2 days in December compared to 72.1 days for the same period a year ago.

• In December, it would have taken 14.5 months to sell all the homes on the market at the current sales rate, an improvement compared to November, when it would have taken 15.4 months.

• Although the Federal Reserve Bank’s action to reduce the federal funds rate to 3 percent will have little near-term direct effect on the housing market, the rate cuts should result in more favorable real estate finance rates as we move through the year.

• Successful passage in the U.S. Senate of the economic stimulus package approved by the U.S. House of Representatives should positively impact the market as buyers who previously would have to take out a jumbo loan will qualify for more affordable conforming loans, thanks to the proposal’s plan to  increase the conforming loan limit from $417,000 to as much as $729,750.