Credit squeeze reaches dramatic stage

Commentary: Central banks pour in cash, but underlying problem still alive

Interest rates for traditional Fannie/Freddie/FHA/VA mortgages are still in the same place, roughly 6.75 percent for the lowest-fee deals. These loans are fully available, underwriting unchanged, funding for closing as reliable as ever.

The rest of the mortgage world … jumbos about 7.25 percent; Alt-A for big-down high-FICO, 9 percent. NINE.