Mortgage rates hovering near 7% are not discouraging every buyer. Individual investors and second-home purchasers made up one in five home purchases in September, the highest share in more than a year.
These buyers often pay in cash or carry smaller loans, which shields them from higher borrowing costs. Their willingness to transact is keeping demand steady even as rates remain elevated.
The shift marks a contrast with primary buyers, many of whom have pulled back. Rising monthly payments have stretched affordability for households relying on financing.
Investor activity tends to rise when rental demand is strong and home prices are expected to hold. Second-home buyers are also less sensitive to short-term rate swings.
The trend suggests that rate headlines alone do not tell the full story of the housing market. Buyer composition matters as much as the cost of borrowing.
For sellers, the presence of these buyers can widen the pool of serious offers. For market watchers, the data signals that segments of demand remain resilient.
Whether the share holds will depend on rates, inventory, and rental yields in the months ahead. September’s figure sets a benchmark for that outlook.
