more messy mortgages

Two days ago I wrote that jumbo loans were in the news, and reported to be the next victim of the credit squeeze. Today CNN.com has more on the jump in jumbo loan costs- 
Big-ticket mortgage rates rise -and what it means for big ticket buyers.
Rising rates for jumbo loans (Wells Fargo is reported to be charging 8%, yes 8%) are likely to take a bite out of home sales in the Tucson Foothills, and other high priced markets, which until now have not seen too much effect from the sub prime mess.
The average sale price of a single family home in the Tucson Foothills is around $700,000- so this is a big market for jumbo loans.