with jumbo conforming at 4.5%, $700k loan at 30 years is just $3500! If someone is in the over 30% tax rate bracket, that $3500 then goes down to roughly $2700 after tax savings. people are getting nearly nothing out of their savings these days. So if there are folks sitting around with $300-400k of house money getting 1% interest, a nice $1.1 million house will certainly draw them out.
