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$1m Mortgages Spike

By Judi Desiderio, Tuesday, November 27, 2012
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Town & Country has experienced a significant uptick.. particularly on the high end.
This is in keeping with T&C 3rd Q Home Sales Report where the $3.5-4.99M price category for All Hampton Markets Combined rose 50% year over year!

A further testament to this increase is apparent on a National level.
Home sales in major metropolitan areas with loans over $1,000,000 rose a whopping 28% in the first three quarters to the highest levels seen since 2008, according to DataQuick.

Jumbo loans, which are mortgages $417,000 and up or $625,500 in high cost areas, posted an increase of nearly 8% year over year—same period, according to FNC a mortgage – technology company. In fact FNC graph on the Fall and Rise of Jumbo Mortgages shows jumbo mortgages rise and fall at much greater rates than conventional loans most years.. with nearly 60% less in 2008 from 2007.

Any Real Estate Professional will tell you a major stumbling block in today’s housing market is the incredibly tight lending practices. Hopefully, this trend is an indicator that banks are loosening up to a normal level… then the only wildcard left are the crazy appraisals.