Sales of high-end homes on the rise
If you can splurge on a vacation home or are looking to buy a high-end home, get ready to enter a hot market.
While sales of previously owned homes were somewhat flat in the beginning of the year, sales of homes in the $750,000 to $1 million range grew 12.6 percent in February, compared with the previous February, according to the National Association of Realtors.
Baby boomers and international buyers are driving part of this surge, says Koss of Mortgage Network.
The trend is partially attributed to the threat of higher interest rates, Koss says. A rate increase of 1 percentage point on a 30-year loan for a $1 million home translates into mortgage payments that are nearly $600 higher each month.
"We actually get a pickup in business when rates go up a bit," he says. "People are worried they are about to lose the opportunity."