Dutch-Style Mortgages: Could They Work In America?

By ERIN FLYNN JAY The Dutch offer home mortgages with interest rates that go down automatically as the loan gets paid off. The premise is that as the loan amount reduces and the property’s value increases, the risk associated with the loan decreases. Dutch-style mortgages recently arrived in the United Kingdom and have been making headlines here in the United States as people ask whether these types of mortgages could be a solution to the housing market’s woes. Nathan Hartseil, branch manager for Main Street Home Loans in Hingham, Mass., doesn’t think so due to the fact our mortgages are based on a secondary market. “Most of our loans are transferred or sold to a secondary market, and that’s what…

Luxury Prices Climbing 3x Faster Than Typical Homes

Well-to-do buyers are avoiding high interest rates with cash purchases, pushing luxury home prices up even more than regular houses. The median luxury home price rose 9% YOY in Q3 2023 to $1.1 million, the highest third quarter on record, according to a new analysis from Redfin. It’s also three times faster than non-luxury prices, which were up 3.3% to $340,000 in the same period. Luxury sales seem to have followed a similar pattern as regular homes, with sales and listings falling last year before reversing course in 2023. Now, limited inventory has increased competition and pushed prices higher. But while mid-tier buyers suffer high rates, high-end buyers bypass them with cash, avoiding mortgages altogether. More than two in five…

Luxury Home Sales See Biggest Dip Since 2012

Luxury home sales tanked by 28.1% YOY in the three months ending August 31, the biggest drop since 2012, according to new Redfin data. The decline overtook even the 23.2% drop that happened at the beginning of the pandemic, when home sales slowed to a crawl in every area. Non-luxury home sales also fell by the largest margin on record, but in a far less dramatic drop of 19.5%, a change of 0.5%. The same stressors that are beating down the non-luxury market are impacting high-end buyers: low inventory, rising rates, and economic uncertainty. “High-end-house hunters are getting sticker shock when they see the impact of rising mortgage rates on paper. For a luxury buyer, a higher interest rate can…