At the outset of the pandemic in early 2020, demand for second homes soared as those with the means jumped on low mortgage costs and higher savings rates. Like many pandemic-era trends, vacation home sales have plummeted significantly, according to a new housing report by Redfin.

Per its analysis of Optimal Blue market data, Redfin found that mortgage rate lock agreements for March dropped 52% from pre-pandemic levels compared to a 13% decrease for primary houses. This is the lowest level for second or vacation home rate locks since February 2016.

A mortgage rate lock, or rate protection, keeps your interest rate from rising between the time you apply for a mortgage and the time you close on your new loan. This allows borrowers to get the best mortgage rate possible while going through the refinancing or purchasing process. Cconversely, if you lock your rate and interest rates fall, you can’t take advantage of the lower rate on a refinance.

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