Passmore, Wayne; Sherlund, Shane M.; Burgess, Gillian - In: Real Estate Economics 33 (2005) 3, pp. 427-463
We derive a theoretical model of how jumbo and conforming mortgage rates are determined and how the jumbo-conforming spread might arise. We show that mortgage rates reflect the cost of funding mortgages and that this cost of funding can drive a wedge between jumbo and conforming rates. Further,...
