Buyers Seek Refuge (Or Returns) in Second Homes
Number of the Day: The most relevant or interesting figure in personal finance
That’s the share of new mortgage applications that were for second homes or investment properties in February, a new record high for at least the last decade.
Demand for second homes is rising because the prevalence of remote work makes it easier to live further away from more densely populated urban areas, at least part of the time, according to the Mortgage Bankers Association, which has been tracking the statistic since 2010. The percentage of overall mortgage applications reflecting second and investment homes has been steadily rising during the pandemic, jumping from around 10% only last summer, the MBA said Friday.
One of the pandemic’s silver linings has been a booming housing market fueled by record low mortgage rates and increased time at home. But as rates tick up, all eyes are on what will happen to demand from homebuyers as well as soaring sale prices.