Prime jumbo mortgages are still available for those seeking to finance a more expensive home, but lenders are being more selective, and spreads to conforming rates remain very high. In addition, the availability of products that complement conforming loans is impaired.
For example, second liens are more difficult and more expensive to obtain, which has deterred some households from making purchases that previously would have been financed by combining a conforming loan with a second lien that would cover some additional amount.