Is Now the Time to Buy That Second Home? A Personal Journey Through Mortgage Rates and Family Legacy

Photo byCheryl Lock.

With mortgage rates on the decline, many prospective buyers are considering whether now might finally be the right time to buy a second home. It’s not just about timing the market—it’s about what feels right, emotionally and financially. For years, my sister and I have been on the cusp of purchasing a lake house, and now, the opportunity seems closer than ever. But our journey is rooted in more than just numbers—it’s a family investment in honor of our grandmother.

Our plan centers around using the inheritance we received from selling her home to cover the down payment. This home wouldn’t just be a property; it would be a family legacy. Our grandmother was the foundation of our family, and creating a shared space for our six children to vacation together honors her memory in a deeply personal way. We hope that this lake house becomes the backdrop for new traditions, offering our kids the chance to create the same kinds of memories that we cherish from our own childhood.

Beyond the sentimental value, we’re also looking at this property as a real estate investment. While ambitious, we believe that with patience and the right market conditions, this could turn into a financial asset for our family. Last year, when I first explored the idea, it wasn’t the right time. But now, with current market predictions, it might just be worth reconsidering.

Why the Market May Be Shifting in Our Favor

1. Mortgage Rates Are Falling
   Interest rates for second homes tend to run higher than for primary residences, but the Federal Reserve’s recent cuts are starting to impact these rates across the board. While rates for primary homes are expected to drop further, second-home mortgages might not see as steep a decline. Even so, this is an improvement compared to the high rates of last year, and that gives us a glimmer of hope for securing a favorable rate.
2. Managing Rising Costs Through Rentals
   It’s always a gamble to rely on income from an investment property, especially when you’re just getting started. But after renting out our primary home this summer while we traveled, we got a taste of the short-term rental business—and we liked it. Once we tackle the initial costs, we hope to generate enough income from renting out the lake house to offset some of our own rising expenses. Given the steady demand for vacation rentals, especially in desirable lake areas, this could help us manage costs and make the home more affordable in the long run.
3. The Emotional Aspect
   With every passing year, life seems to speed up. My husband and I turned 41 this year, and our children are growing up quickly. We don’t want to wait any longer to start making memories in a place that holds meaning for our family. Honoring our grandmother with this lake house has become more than just an idea—it’s a pressing desire. There may never be a perfect time to buy a home, but this feels like the right time for us, even if the market isn’t perfectly aligned.

Final Thoughts

For anyone considering a second home, there may never be a “perfect” moment to take the plunge. But with mortgage rates showing signs of easing and our personal motivations pushing us forward, the time feels right to start turning our lake house dreams into reality. Now, more than ever, we’ll be watching the market closely and keeping our eyes on potential properties.