Jumbo Mortgage Market Grows 39% — What It Means for CA Buyers

Prime non-agency and jumbo mortgage activity surged 39% in the first half of 2026 compared to last year, signaling strong momentum for high-value home financing in California.

If you're buying a high-value home in California, here's some encouraging news: the jumbo mortgage market is heating up in a big way.

Prime non-agency mortgage-backed securities — the backbone of jumbo home loans — totaled over $14 billion in the second quarter of 2026 alone. More importantly, first-half 2026 issuance is running nearly 40% ahead of where it was this time last year. That's a significant signal that lenders are actively funding jumbo loans and investor appetite for these mortgages remains strong.

What does this mean for you as a California buyer? More lender competition typically translates to better rates and more flexible qualifying options on loan amounts above the conventional conforming limit. Whether you're purchasing in the Bay Area, Los Angeles, or San Diego — where home prices routinely exceed conforming limits — this expanded market activity works in your favor.

Interestingly, GSE-eligible loan volume also ticked up 2.7% quarter-over-quarter, meaning even conventional high-balance loans are seeing solid demand.

Bottom line: if you've been waiting on the sidelines, the jumbo lending environment right now is more active and competitive than it's been in years.

Thinking about a jumbo purchase or refinance? Contact our team today — we'll match you with the best available options for your situation.