Investors are coming off the sidelines more quickly than individual buyers in the U.S. home market. During the second quarter, investors purchased 16.8% of U.S. homes, the highest second-quarter share on record aside from 2022. That's down from an all-time high of 20.8% hit during the pandemic but up from 16% a year earlier, according to Redfin.

While investor home purchases rose 3.4% in the second quarter, overall U.S. home purchases fell 1.9% as elevated mortgage rates and prices deterred buyers, the firm said. Generally, investors are less sensitive to mortgage rate fluctuations than regular buyers because most pay in cash, but they are subject to rate fluctuations on loans they take to cover flipping and other expenses.

Investors purchased $43 billion worth of homes in the second quarter, also representing a two-year high. Redfin said this trend represents a market stabilization following several years of dramatic ups and downs, including double-digit increases in investor home purchases during the pandemic followed by a near 50% plunge last year.