Growth in Mortgage-Rate Locks For Second Homes Dropped to Pre-Pandemic Levels in May

Source: Redfin — 

Though mortgage-rate locks for second homes were up nearly 50% year over year in May, the growth rate is returning to pre-pandemic levels as high prices and tighter lending rules make vacation-home buyers think twice. 

The number of buyers who locked in mortgage rates to purchase a second home nationwide rose 48% year over year in May. Though that’s a significant increase, it’s the first time in a year the annual growth rate has fallen below 80%. Year-over-year increases in this report are likely exaggerated because demand for second homes was relatively low in May 2020 due to the coronavirus pandemic slowing real estate activity.