Second-home interest hit record levels in March of 2021, but ever since then numbers have slowly retreated. According to Redfin, September brought renewed interest, as second-home demand rebounded, up 60 percent compared to pre-pandemic levels.
In July of 2021, interest in vacation/second homes was at approximately 40 percent of pre-pandemic levels.
That’s according to a Redfin analysis of mortgage-rate lock data from real estate analytics firm Optimal Blue. Homebuyers must specify whether they are applying to secure a mortgage for a primary home, second home or an investment property.
Earlier this year, Fannie Mae announced plans to limit the number of second-home and investment-property loans it would buy, making it more challenging for some buyers to take out mortgages on vacation homes.
“The market may have overreacted to the Fannie Mae rule a bit, which would explain why we’ve been seeing demand for second homes bounce back,” Redfin Deputy Chief Economist Taylor Marr said. “Mortgage rates are on the rise as well, which is likely creating a renewed sense of urgency for vacation-home buyers who want to purchase properties before rates climb even further.”