Mortgage-rate locks for second homes are down nearly 50% from pre-pandemic levels, compared to a 33% drop for primary homes. Rate locks for second homes hit a seven-year low in February, dropping to 52% below pre-pandemic levels. As far as the plunge in mortgage locks for vacation homes; that comes after they skyrocketed during the pandemic, hitting a peak of 88.5% above pre- pandemic levels in October 2020. Affluent Americans jumped at the chance to snap up second homes with record-low mortgage rates during a time when many of them could work remotely from vacation towns. Demand for primary homes jumped during that time, too, but the increase was much more modest, reaching a peak of 16% above pre-pandemic levels in late 2020.
Mortgage rates inched back up this week and remain anchored north of seven percent. The reacceleration of inflation and strength in the economy is keeping mortgage rates elevated. However, potential homebuyers can still benefit during these times of high mortgage rates by shopping around for the best rate quote. Freddie Mac research suggests homebuyers can potentially save $600-$1,200 annually by applying for mortgages from multiple lenders.
