High interest rates and tighter credit boxes led to a decrease in originations of non-agency jumbos in the third quarter of 2023. (Includes data table.)

Affluent homebuyers are choosing all-cash deals over mortgage financing to avoid the high-interest rate environment.

Originations of non-agency jumbo mortgages increased by 35% from the first to the second quarter. JPMorgan Chase’s acquisition of First Republic Bank bolstered Chase’s jumbo lending efforts. (Includes data chart.)

The jumbo mortgage sector is evolving as the cost of higher-priced homes has continued to grow exponentially.

However, a Goldman strategist said residential lending should avoid the pain that will be more pronounced in other sectors.

However, drastic market changes are likely as Wells Fargo ends its correspondent lending efforts...

Led by Wells Fargo, banks held the top seven spots in the non-agency jumbo lending sector...

The top three agency sellers of high-balance loans: UWM, Rocket Mortgage and PennyMac Financial...

Regulatory changes in response to the financial crisis of 2008 appear to have incentivized big banks to increase their focus on jumbo mortgages, according to researchers at the Federal Reserve Bank of New York.

Jumbo lending increased a scant 2% in the fourth quarter and held steady on an annual basis in 2020. The sector lost a significant amount of market share as agency refi business boomed. (Includes data chart.)