"Housing Market for Dummies"

Upper Bracket Squeezed by Jumbo Bottleneck

Mortgage Update: Jumbos Remain Elusive

At a time when some mortgage products are showing signs of life, jumbo mortgages are hard to get and expensive, making it difficult for many would-be move-up buyers to take action.

--Minneapolis Association of Realtors (6/22/09)

Want a quick, simple handle on today's housing market?

Take $417,000, the limit for conforming loans (vs. jumbo loans); then divide by 80% (that builds in a 20% mortgage, which is the typical threshold for avoiding mortgage insurance).

The result: low $500's.

Below that threshold -- especially well below, where first-time buyer incentives dominate -- the Twin Cities housing market is doing OK.

Above, well, things aren't so great.