Anyone who is capable of getting a second mortgage will consider holding it and renting it out if they can. The yield is very likely to be higher than the payments these days.
But now that the second mortgage is so much more expensive, fewer people will be able to do it right? More specifically, previously you could borrow against the increasing value of your home, at a low interest rate, to fund the next purchase. This is what everyone on the investment side was doing. With neither of those factors true any longer, it seems this scenario will be less common.
At a higher level, I think this is what the transfer of wealth looked like for the past decade.
We could get by if need be, but it’s not like many people get a new house for the hell of it. Usually it’s because of new life circumstances.