Boston Real Estate Investors Association

Demand for mortgages for second homes has dropped to its lowest level in eight years.

The Decline in Mortgage Demand for Second Homes

Redfin logoWe 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.

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