The sale of homes priced $1 million and above saw a 38% increase compared to 2009, due mainly to improved consumer confidence and the increasing popularity of “jumbo loans.”

“Rates are down for jumbo loans,” said David Adamo, CEO of mortgage banking firm Luxury Mortgage. “Banks are seeing benefits in making these types of jumbo loans and are doing more re-financing now.”

A 30 year fixed jumbo is currently at 5.58% for a million dollar loan compared to last year’s rate of almost 7%. This specialty product differs from traditional loans in that the rate is not tied to treasuries but set primarily by the lenders.

Consequently, consumer confidence in the higher income brackets has been on the rise recently, as have luxury home sales.

“Home values have stabilized,” said Steve Habetz, president of Threshold Mortgage. “One person sees others buy or sell and they join in. That’s been happening.”