- June 12, 2021
- Posted by: Stratford Team
- Category: Business
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The buzz on second home purchases is starting to cool off due in large part because of higher prices and stricter mortgage-lending rules, according to Redfin.
Although the number of buyers who locked in mortgage rates to purchase a second home in May increased nearly 50% compared to a year ago, “it’s the first time in a year the annual growth rate has fallen below 80%,” according to the real estate brokerage.
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In June 2020, the demand for second homes surged, with second mortgage locks increasing 110% compared to a year earlier, according to Redfin. The level stayed high through April.
In May, however, the annual increase cooled to pre-pandemic levels. Although Redfin noted that year-over-year increases are likely “exaggerated” due to the fact that the pandemic hindered real estate activity a year ago.
The slowdown this spring can be attributed to several…
