The increase in applications marks the eighth straight month of 80%-plus year-over-year growth.
Mortgage applications for second homes skyrocketed 84% year-over-year in January, according to a report from Redfin. The jump marks the eighth straight month of 80%-plus year-over-year growth. Despite being a substantial increase, the report notes that it is down from the peak 118% year-over-year increase in September 2020. The increase in second-home applications year-over-year is more than twice the increase in applications for primary homes, which is based on the analysis of rate lock data from Optimal Blue. As the COVID-19 pandemic continues to convert many companies to a remote workforce, more folks are looking to less densely packed cities and decamping to vacation destinations. Redfin also states that the increase in demand for second homes is indicative of a K-shaped economic recovery from the pandemic-driven recession.
Source: National Mortgage Professional