Rate locks during the past year for second homes have surpassed primary home rate locks by 100%, according to a new report by Redfin. When homebuyers work with a lender to lock in an interest rate, the buyer must list the new home as their primary residence, second home, or investment property. Rate locks are a good way to forecast buying trends since 80% of rate locks end in a home purchase. MarketWatch notes that the rise in second homes could result from more telecommuters who now have the ability to move freely. And wealthy families likely have more opportunities to work remotely.
“The combination of the wealthy becoming wealthier, remote work turning into the new normal and low mortgage rates is creating an ideal environment for affluent Americans to buy vacation homes,” Redfin chief economist Daryl Fairweather said in the report.
“As long as the economy continues to grow, I don’t foresee demand for second homes slowing down anytime soon,” she added.
Fortunes have seriously turned around for vacation-home markets since the beginning of the coronavirus crisis.