According to national real estate agent Redfin, demand for second homes in the United States is up 70% from pre-pandemic levels in October 2021. This exceeded the 48% increase in August but is below 91% in January.
A mortgage rate freeze is an agreement between a homebuyer and a lender that allows the buyer to set an interest rate on a mortgage for some time, protecting against future rate hikes. Buyers should indicate whether they are charging a mortgage rate on their primary residence, secondary residence, or investment property. The actual home purchase determines approximately 80% of the mortgage interest blocks.
House sales are rising year-round as the property market generally slows and many buyers look to secure low mortgage rates on the second houses before interest rates rise any further.
“Many companies have ratified their remote working policies, which is fueling continued demand for vacation homes,” said Daryl Fairweather, Redfin chief economist. “We anticipate this demand will remain strong as more employers establish permanent policies that allow workers to live and work where they want.”
In March, a restriction by the Treasury Department and the Federal Housing Finance Agency limited the number of second home loans and real estate investments Fannie Mae could buy. The restriction was lifted in September, making it easier for second-house buyers to get low mortgage rates, which is likely to increase demand for second houses as well, Fairweather added.