Demand for second homes increased 70% from pre-pandemic levels in October
SEATTLE, November 17, 2021 / PRNewswire / – (NASDAQ: RDFN) âThe demand for second homes has risen 70% from pre-October pandemic levels, according to a new report by Redfin (redfin.com), technology-based real estate brokerage. This topped August’s 48% gain but below January’s record 91% growth.
A mortgage rate freeze is an agreement between a buyer and a lender that allows the buyer to lock in an interest rate on a mortgage for a certain period of time, providing protection against future increases in interest rates. . Buyers must specify whether they wish to obtain a mortgage rate for a primary residence, a secondary residence or an investment property. About 80% of mortgage rate freezes translate into actual home purchases.
Home sales are on the rise at a time of year when the housing market typically slows, with many buyers keen to secure low mortgage rates on second homes before rates rise further.
âMany companies have stepped up their remote work policies, which is fueling continued demand for vacation homes,â said Redfin’s chief economist. Daryl fairweather. “We expect this demand to remain strong as more and more employers establish standing guidelines giving workers the ability to live and work where they want.”
In March, a restriction enacted by the Treasury Department and the Federal Housing Finance Agency limited the number of second home and investment property loans Fannie Mae could purchase. That restriction was removed in September, making it easier for second home buyers to get a low mortgage rate, which is likely fueling second home demand as well, Fairweather added.
To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/vacation-homes-october-2021
Redfin (www.redfin.com) is a technology-driven real estate company. We help people find housing through brokerage, Instant Home Buyers (iBuying), rentals, loans, title insurance and renovations. We sell houses for more money and charge half the cost. We also manage the first real estate brokerage site in the country. Our homebuying clients see homes with on-demand tours first, and our loan and title services help them close quickly. Customers selling a home can receive an instant cash offer from Redfin or have our home improvement team fix their home to sell it for the best price. Our rental business enables millions of people across the country to find apartments and houses for rent. Since our launch in 2006, we have saved more than $ 1 billion in committee. We serve over 100 markets across the United States and Canada and employs over 6,000 people.
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