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In other words, use a different dataset, and you don’t see the crossover phenomenon at all. Gumbinger has a few ideas about why the MBA’s data might be such an outlier; one reason, he says, is that the MBA counts all mortgages of more than $417,000 as jumbo mortgages, even when they’re in markets like New York and Los Angeles where mortgages can be conforming when they’re as large as $625,500. Additionally, he says, the MBA rates reflect actual quoted mortgage rates to borrowers — which means that if borrowers are becoming less creditworthy for whatever reason, the rise in conforming rates might not really be comparing apples with apples. For a borrower of given creditworthiness, mortgage rates won’t have risen as much as the WSJ chart shows.
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