Wealthy Homebuyers Keep Taking Out Bigger Mortgages
Despite higher mortgage rates, US loans above $5 million jumped more than 50% last year, per data cited by Barron's. Private bankers say demand has stayed strong.
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what happened
America's wealthy homebuyers appear unbothered by higher mortgage rates. According to Home Mortgage Disclosure Act data supplied by the Mortgage Bankers Association, originations above $5 million rose more than 50% last year versus 2024, Barron's reports.
Private bankers say demand for these multimillion-dollar loans has stayed elevated since last year. Jon Kessler, head of Credit & Cash Management Solutions at PNC Private Bank, said he had expected activity to slow as rates rose, but demand has remained fairly consistent and strong.
Realtor.com data showed that transactions of $5 million and up increased 8% last year. Joel Berner, a senior economist at Realtor.com, said average buyers are being squeezed hard by mortgage rates.
why it matters
Demand for these superjumbo loans is tied in part to the stock market: the S&P 500 is up 12% this year, so investors see more value in holding cash in equities than in buying a mansion. For markets, it suggests that higher rates weigh more heavily on middle-income borrowers than on the wealthy.
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- Big Homes, Big Loans — Barrons.com, 30 October 2026 at 22:51 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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