The luxury home market faces the same mortgage crisis as everyone else. Homes priced over a million dollars could sit on the market for months without bids as securing a jumbo loan is even harder because of the higher risk that lender have to take as it must remain on the company books, and thus tack on a higher interest rate. A 30 year jumbo loan carries a 6.91% compared to the 5.7% on a regular 30 year home loan.
If you ever in the market for a free Mercedes Benz with a home, simply pony up $800,000.
http://www.usatoday.com/money/economy/housing/2009-07-07-luxury-homes_N.htm
