NEW YORK, July 30, 2026 — Premarket trading in U.S. equities is underway, with regular market hours set to begin at 09:30 EDT. In a notable development for the housing market, second-home mortgage originations in the United States posted their first annual increase in four years during 2025, according to data from Redfin, now a subsidiary of Rocket Companies (NYSE: RKT).
Recovery in Perspective
The number of second-home loans originated in 2025 reached 90,413, up from 86,870 in 2024 — a gain of 3,543 loans, or 4.1%. While this marks a positive turn, the rebound remains modest. The increase represents only 2.1% of the 171,419-loan decline that occurred between the 2021 peak and the 2024 trough. Overall volume is still 65.0% below the pandemic-era record of 258,289 loans in 2021.
Second-home mortgages accounted for just 2.7% of all mortgage originations in 2025, down sharply from 5.1% in 2021. Primary residences continued to dominate, representing 87.7% of the market. The data underscores that the vacation-home segment remains a small fraction of overall lending activity.
Wealthy Borrowers Dominate
High-income individuals drove the recovery, making up 85.2% of second-home borrowers. The median income for these borrowers was $294,000, more than three times the U.S. median household income of $88,000. The median value of second homes originated was $515,000, 30.4% higher than the median primary residence value of $395,000.
Borrowers aged 45 to 64 accounted for 58.7% of second-home purchases, according to Redfin calculations. "Vacation homes are seeing a slight recovery, though the current market is not the same as it was in the pandemic era," said Chen Zhao, Redfin's head of economics research.
Regional Variations
The recovery was uneven across metropolitan areas. West Palm Beach, Florida, recorded the highest proportion of second homes among the 50 metros analyzed, with a 5.5% share. Other top markets included New Brunswick, New Jersey (4.6%), Riverside, California (3.8%), Phoenix, Arizona (3.2%), and Nassau County, New York (3.2%). Nassau County posted the highest median value at $1.915 million.
Some areas saw rapid percentage gains from small bases. Montgomery County, Pennsylvania, rose 28.8%, though second homes made up only 0.5% of its market. Indianapolis climbed 26.6% from a 0.9% share. In contrast, Las Vegas experienced a 20.9% decline.
Seller Leverage in Vacation Markets
Data from MarketWatch and Realtor.com for June 2026 reveals leverage shifting toward buyers in some vacation destinations. In Key West–Key Largo, Florida, homes sat on the market for an average of 103 days — roughly double the national median of 53 days. Naples–Marco Island properties averaged 102 days. In Detroit Lakes, Minnesota, 30% of listings had price reductions. These trends suggest growing negotiating power for buyers, though they do not yet signal a broad buyer's market.
Credit Conditions and Industry Impact
Mortgage rates remain a headwind. Freddie Mac (OTC: FMCC) reported the 30-year fixed rate at 6.58% as of July 23, up slightly from 6.55% the prior week. Higher rates continue to constrain demand, particularly for discretionary second-home purchases.
For Rocket Companies, the data highlights a shift toward higher customer value rather than volume growth. By acquiring Redfin in July 2025, Rocket combined home search and brokerage traffic with its mortgage platform, gaining access to wealthier clients and pricier homes. The strategy reinforces the argument for greater customer lifetime value, even as nationwide origination volumes remain subdued.
Risks to the recovery include further rate increases, a potential downturn in rental performance for vacation properties, and the fact that the analysis covers only financed transactions — cash purchases are excluded. Moreover, the data reflects 2025 closings, not ongoing 2026 activity. Nonetheless, the recovery, though modest, is genuine and marks a turning point after four years of decline.
