Freddie Mac and Fannie Mae have been offering to buy loans that used to be considered “jumbo” from lenders for loan amounts up to $729,750 since the economic stimulus package was signed.

Until now, the program has been a flop. The rates offered were very unattractive.

Finally, they have decided to reduce the rates on these “agency jumbo” loans. Coupled with the overall decrease in market interest rates this week, they finally are worth taking a look at.

Today, the rates are about the same as they were yesterday.

I am advising my clients to get their documentation together now before the massed flood the lenders with applications because I am anticipating a slowdown in the processing. A slowdown could mean that the rates may not be as good for the people in the back of the line as they are for the people in the front.