Historically, most mortgage origination volume comes from traditional purchase and refinance mortgages on primary residences. A smaller, yet significant portion of the market consists of purchase originations for second homes – homes that are neither the borrower’s primary residence nor an investment property. During the housing downturn, the second home mortgage market experienced a severe decline. However, in each year since 2009, the share of the mortgage market consisting of second home purchases has grown.
In this latest edition of Housing Insights, Fannie Mae’s Economic & Strategic Research Group provides insights into the typical second home buyer, the history of the second home market, and the outlook for second home sales in the future.