Black Friday for mortgages ?

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Happy Thanksgiving LA Land readers !

Looks like mortgage rates are coming down thanks to the latest Fed action. Brokers say 5.25% 30-year-fixed loans are no sweat for those with strong FICOs and 25% down payment. I have a piece on this in the Times today, and have since gotten a couple of e-mails from brokers saying even Jumbos can be obtained at 6% rates or even a bit below for vey well qualified borrowers.

While the big banks aren’t offering these deals, some boutique lenders are, the brokers say. Again, the ‘catch’ is these would be for bullet-proof, high-income, high FICO, financially sound, documented borrowers. In other words, the kind of people a rational market might determine are worthy of borrowing more than $729,000.

--Peter Y. Hong