Slashing rates, rising demand: What it all means for buyers

I’m Austin, CEO and co-founder of Pacaso. Spring often signals a fresh start in the housing market, and 2025 is no exception. This year, we’re seeing a gradual increase in both inventory and demand. While the year began with lower sales volume, homebuyer demand is gaining traction, and mortgage rates remain below 7%—a welcome trend for buyers. As market conditions evolve, we’ll continue to monitor trends and provide insights. If you have questions about a specific market or are interested in exploring co-ownership opportunities, don’t hesitate to reach out. Some things we’re seeing shaping up this season: While home sales fell 4.9% in January—continuing a broader market slowdown, according to According to the Moreover, Earlier this month, mortgage rates declined for the sixth consecutive week, with the 30-year fixed rate dropping to 6.67%—the lowest level since October 2024. As of Tuesday, March 25, 2025, the current average interest rate for a 30-year, fixed-rate conforming mortgage loan in the U.S. is 6.569%, according to data available from mortgage data company Optimal Blue. While rates have continue to fluctuate, they remain in the 6% range, providing relief to buyers who had been sidelined by above 7% rates and higher borrowing costs. Housing inventory is on the rise, giving buyers more options in many markets. According to However, inventory remains 23.1% below February 2019 levels, meaning buyers in certain regions—particularly parts of the Midwest and Northeast—are still facing tight resale markets with limited options. As we move further into spring, these market dynamics will continue to evolve. Whether you’re considering co-ownership or exploring new real estate opportunities, we’re here to help you navigate the trends. Our team took a deep dive into the latest housing trends across North and South Carolina, and one key insight stood out: North Carolina is leading the way in vacation homebuyer demand, outpacing South Carolina across several key metrics. From the Blue Ridge Mountains to the Outer Banks, buyers are drawn to the state’s natural beauty, accessibility, and year-round lifestyle appeal. Explore the full report to see what’s driving the shift—and what it means for the future of second home ownership in the Carolinas. See the report

Recent interest rate cuts by the Federal Reserve have spurred enthusiasm in the real estate market because even small changes can have a significant impact on real estate purchasing power.  The Fed cut rates .5% in September and .25% in November, lowering its benchmark borrowing rate by three quarters of a point in 2024. While the Federal Reserve does not directly set mortgage rates, the changes in its benchmark rate does influence real estate borrowing. With this lower benchmark target, first and second home buyers should have more purchasing power and the ability to capitalize on real estate purchases. For Pacaso clients, who purchase shares of a luxury vacation home through our co-ownership model, lower borrowing rates translate directly to more affordability, better financing options and a generally enhanced ownership experience. In general, a lower Federal Reserve benchmark rate means lower borrowing costs for real estate buyers. Pacaso’s model already excels at supercharging buying power, making high-end properties accessible by splitting the purchase price and ongoing costs among multiple co-owners.  The recent cuts amplify this affordability. For example, rather than buy 100% of a $10 million Aspen home that you might only use 1-2 months a year, Pacaso enables you to purchase ⅛ to ½ of that same home, for a fraction of the price. You get the same enjoyment of the home, without the large price tag, and Pacaso tackles all of the headaches associated with owning the home.  Additionally, buyers can finance their purchase. Lower borrowing rates lead to smaller monthly payments. And with direct financing, Pacaso is already offering great financing options. With lower rates, your potential savings extend over the life of the loan, translating to more luxury living for a smaller price tag.  Pacaso gives buyers Pacaso also offers financing directly in order to make the purchase, and your ownership, as seamless as possible. You may be able to find a loan with your bank to purchase a second home, but the rates you find through Pacaso will likely be even more competitive and affordable than a traditional loan.  This is in large part due to our lending partnerships, and our growing experience in financing hundreds of vacation home purchases. Plus, Pacaso closings can happen in as little as one day so you can start enjoying vacation home ownership right away. One of the biggest advantages of decreased interest rates is the reduction in monthly payments. This can make owning a share of a luxury property more cost-effective than ever before. Lower monthly expenses allow buyers to allocate more resources to other important priorities while still enjoying the benefits of ownership.  For example, let’s take a $500,000, 7-year loan. At 10%, the total interest for this simple loan would amount to about $197,000. At 9%, even just 1 percentage point lower, the same borrower would save about $22,000, a roughly 11% savings, over the course of the loan. This shows how even small changes in borrowing rates significantly impact the overall price of a loan.  Timing of these cuts presents an opportunity for those looking to enrich their lives. In a recent The value of spending time with family and friends in combination with dollar maximizing strategies position Pacaso to serve you and your goals. From reduced monthly costs to enhanced financing, your buying power is truly amplified, and the benefits are clear. Pacaso’s

I’m Austin, CEO and co-founder of The housing market is indicating signs of recovery and stability in home prices, and we at Pacaso ended the summer with strong sales. Prospective homebuyers are increasingly turning to new construction due to the shortage of existing home listings and continuously fluctuating mortgage rates. This shift in buying behavior has resulted in a surge in new home sales and a modest uptick in pending sales, suggesting positive momentum in the market.  Here is a deeper dive into these observations: Home builders fuel slight sales surge Prospective homebuyers are undoubtedly feeling frustration amid scarce listings for existing homes. As a result, Additionally, according to In August 2023, Pacaso saw its strongest month of the year so far, recording a 142% increase in funded shares compared to July 2023.  Inventory remains low as buyers look to alternatives New listings hit a seasonal low in July, with just under 336,000 properties coming to the market according to However, Given the scarcity of inventory, homebuyers have alternative options like the rental market, which can provide an affordable option as they save up for a home purchase. In top second home markets, co-ownership options like Pacaso offer an innovative solution amidst soaring rates. This ownership  model enables buyers to own a portion of a luxury second home, reducing their monthly mortgage costs in markets like Vail and Tahoe compared to full ownership. Pacaso's resale market is also thriving, with homes averaging a more than Housing market set to embrace 7%+ rates In August, mortgage rates reached their highest levels in 21 years, as reported by While current mortgage rates are hovering above seven percent, the forecasted rates from Annual home prices stabilize, indicating housing market recovery Low inventory continues to cause U.S. home prices to increase. However, the recent rise in mortgage rates to 7% has cooled down the previously upward trajectory of home prices, which had been steadily increasing throughout the year. In June, prices rose on a monthly basis while annual prices remained unchanged, signaling a shift in the housing market. We'll continue to check in with updates, and encourage you to contact us with any questions about a market of interest.

I’m Austin, CEO and co-founder of As the winter thaws and flowers begin to bloom, many wonder if the spring housing market is set to heat up. At Pacaso, 2023 is off to a strong start. We see early signs of buyers eager to make their second homeownership dreams a reality. However, with recent bank turmoil and ongoing macroeconomic uncertainty, this year's market may differ from traditional spring housing markets. Here are some spring trends on the horizon —and how Pacaso stacks up: 1. Buyers are springing back to the market  Several recent indicators point to growing buyer demand. One 2. Home buyers are shopping as rates continue to fluctuate Despite fluctuating mortgage rates, consumer interest is increasing. Mortgage-purchase applications increased 17% from February, increasing for the third straight week according to These pending sales could be directly correlated with rates decreasing. On March 30, the average weekly rates dropped from 6.42% to 6.32%, according to 3. Low inventory drives sight unseen sales Despite buyers preparing to enter the market and take on record-high rates, inventory continues to be an obstacle for many home buyers. According to a 4. Home prices rise, and premier destinations remain stable Many real estate experts forecast that home prices will be under pressure for the next year or two due to macro uncertainty and interest rates. However, the market is seeing an encouraging turn with strong home sales at the start of this year. February brought the strongest one-month gain since May 2022, with prices rising nationally by 0.16% according to Home prices will continue to vary greatly depending on the specific market's supply and demand levels. Pacaso focuses operations in markets where demand is projected to remain strong and home prices are expected to increase. For instance, Aspen's Pitkin County is experiencing a historic shortage of inventory, but demand remains high due to its location, world-class skiing and outdoor activities, and the growing trend of remote work. In such communities, primary and secondary homes tend to hold their value and even appreciate over time. We'll continue to check in with updates, and encourage you to contact us with any questions about a market of interest.

I’m Austin, CEO and co-founder of As summer officially began last week, the US housing market saw double-digit declines in available homes for sale. However, home builders are stepping up their game by increasing new construction of inventory, reaching the highest levels seen in over a year. Homebuyers are still also showing unwavering interest in actively searching for and purchasing homes despite these challenges. This strong desire to buy and shop in the housing market reflects a resilient and optimistic outlook for the future. As a bonus, the likelihood of a US recession has decreased thanks to the resolution of economic risks. Here are some notable observations: 1. Inventory levels experience double-digit decline According to 2. Home builders respond to low inventory In May, housing starts and permits reached the highest level seen in over a year. Housing starts rose to 1.63 million (SAAR) in May, representing a 21.7% increase from the revised figures of April 2023 and a 5.7% increase from May 2022, according to the 3. Home prices continue to rise According to 4. Homebuyers respond to declining mortgage rates All in all, rates are floating around 7%. While higher interest rates may initially seem unfavorable to real estate investors, they can actually 5. Likelihood of a U.S. recession diminishes According to We'll continue to check in with updates, and encourage you to

I’m Austin — CEO and co-founder of The crash of Silicon Valley Bank has left many unanswered questions for the greater macro-economic environment, but one thing remains clear: Few other investments offer the same stability, reliability and fulfillment as real estate. During times of economic uncertainty, savvy buyers can turn to real estate to park their money. There’s value in parking money into something tangible and sentimental like a second home — a purchase that has historically weathered hard times better than the stock market. Here are some of the latest developments you need to know about in the wake of the banking turmoil: Mortgage rates dip ahead of the spring real estate market. The average rate for the popular 30-year fixed mortgage dropped to 6.18% on Monday, according to As mortgage rates dropped, the average U.S. home price also decreased 1.8% year-over-year during the four weeks ending March 12, according to — Joel Kan, MBA Vice President and Deputy Chief Economist. The National Association of Homebuilders (NAHB) remains cautiously optimistic as the nation experiences a third consecutive monthly increase in builder sentiment. One of the biggest concerns with the Silicon Valley Bank's collapse is its impact on the construction industry. Many developers relied on banks to finance their construction projects. With the closure of these banks, many developers may find themselves short of funds for their ongoing and future projects, but with an increasingly low supply of affordable housing, homebuilders must continue to push forward with developments. — Alicia Huey, While the long-term effects of the current banking turmoil are still unknown, it is clear that the real estate industry is facing a challenging environment. However, with careful planning and consideration, the industry still has potential for growth and innovation. Pacaso has experienced increased demand in our luxury second homes, with deposits increasing 90% in the first two months of 2023 compared to the last two months of 2022. We’re seeing homebuyers coming back now that they have adjusted to the newly higher interest rates of 2023. We'll continue to check in with updates, and encourage you to contact us with any questions about a market of interest.