What Happened?
This week, Jann Swanson of Mortgage News Daily wrote an in-depth report on how the second home market continues to rebound from the housing downturn. People often view a second home as a smart investment, especially when rates are favorable like now.
Swanson: “While most mortgages are still originated to purchase or refinance owner-occupied primary residences, there is a significant market for mortgages to purchase second homes.”
What the News Means for Your Clients
A survey from the National Association of Realtors (NAR) describes the ideal candidate for a second home:
– person who is older with a higher income
– more likely to use a larger degree of cash than typical primary home buyer
A quote from the article by Fannie Mae: “As the population continues to age, we expect people to continue to use their savings to buy second homes, thereby contributing to a segment of the mortgage market that will continue to grow in the years to come.”