Mortgage Rates Report

Jumbo mortgage rates are still high because of the credit crisis.  Oh. wanna know whom to blame?  I call them the 3-6-3 club; borrow money at 3%, lend it at 6%, and stop answering the telephone at 3PM.  If you thought the oil companies were predatory, you should deal with the American bankers.

Pat Kitano tells us why:

All banks’ earnings are suffering, so they all feel justified to an oligopolistic position that increases their earnings by creating a loan supply bottleneck. They act like airlines; once the low cost carrier disappears, prices jump. Like any oligopoly, nobody is rocking the cart with conspicuous excellence. Just like those WAMU commercials… the bankers’ club is back!

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