Soaring Mortgage Rates Dent Demand for Vacation Homes
The demand for a second or a vacation home is plummeting while mortgage rates continue to skyrocket.
Rebecca Richardson was asked by Bloomberg about her thoughts on what's caused home buying to fall while mortgages continue to rise.
While the increase officially doesn’t take effect until April 1, the fees have been priced into loans for almost a month, so that may have deterred some buyers already, according to Rebecca Richardson, a broker at Wyndham Capital Mortgage in Charlotte, North Carolina. The city is about a three-hour drive to both the mountains and the beach, making the area a popular vacation-home spot. Combined with rising rates, the fee increase “has definitely dampened the enthusiasm” among her clients, Richardson said. “It’s becoming a much weightier decision versus last year.”