The Decline in Mortgage Demand for Second Homes
We recently posted about how there are around 6.5 million second homes in America. With that in mind, a recent report form Redfin says mortgage demand for second homes has fallen to an 8-year low. Specifically, they say mortgage-rate locks for second homes fell 13.1% year over year in August to the lowest level since March 2016 on a seasonally adjusted basis. By comparison, mortgage-rate locks for primary homes declined 5.2%.
Demand for second-home mortgages is likely cooling in part because some buyers are paying in cash to avoid elevated mortgage rates. But high prices, economic jitters and a sluggish rental market have also made second homes less attractive.
Click here to read the full report at Redfin.