🏡 The Lending Letter

Friday, November 28, 2025 • Black Friday Edition 🦃

📊 Today's Rate Check

📉 The post-Thanksgiving stillness continues! According to MND, rates are exactly where they were on Wednesday. Bond markets closed early today, but next week should bring more action as economic reports roll in.

🎯 Lender Promos You Need to Know

🔥 What's Actually Happening Out There

The Great Delisting Wave 🌊

Here's a wild stat: Nearly 85,000 sellers pulled their homes off the market in September — that's up 28% from last year and the highest September level in eight years. Why? 70% of September listings sat on the market for 60+ days, and sellers weren't feeling the low-ball offers.

Redfin's senior economist nailed it: "When tens of thousands of homeowners pull their homes off the market rather than accept a low offer, it effectively reduces the supply of homes that are actually available for buyers." Translation? Inventory looks better on paper than reality. 📋❌

The typical price cut hit $10,000, but some sellers are getting desperate with multiple reductions totaling $25,000 — matching the largest discounts Zillow has ever recorded. Many of these sellers will likely try again in spring when the market heats up. 🌸

First-Time Buyers Are Getting Older (Literally) 👴👵

According to the National Association of Realtors, first-time buyers now make up only 1 in 5 home sales — a record low. Get this: the average first-time buyer is now 40 years old. Forty! 🎂

It's gotten so ridiculous that NAR literally changed their annual report cover photo from a young couple to an older couple (average buyer age: 59) because it was more accurate. That's not a typo — the typical buyer is pushing 60. 😳

One couple profiled is in their mid-30s, both with full-time jobs (HR and property management), and they're STILL feeling priced out. "There is no feasible way that we could buy a house for $350,000 and then pull a home-equity line of credit to drywall the basement," they said. The dream of buying a fixer-upper is basically dead. 💀

Regional Chaos: Florida vs. The Midwest 🗺️

The housing market is having a full-blown identity crisis depending on where you look:

Florida: Prices dropped 2.3% year-over-year — the biggest decline in the country. Cape Coral-Fort Myers got hammered with a 10.8% price drop. Mortgage delinquencies are rising as escrow costs climb 45% compared to five years ago. Yikes. 📉

The Midwest: Detroit prices jumped 7.4% to $290,000 median. Out-of-state investors, suburban bidding wars, and "house hacking" are fueling the surge. Illinois led the nation with 6.9% appreciation, and homes in Wisconsin, Illinois, and Ohio are selling 27 days faster than the national average. 🚀

If you're an investor eyeing the Midwest, you might want to explore those investment property loan options before everyone else catches on. 👀

🎓 Today's Mortgage Masterclass

Rate Locks 101: Don't Be That Person 🔒

Since we're seeing rates hovering near multi-year lows, let's talk about something crucial: rate locks. This is where people mess up all the time.

What is it? A rate lock freezes your mortgage rate for a set period (usually 30-90 days) while your loan processes. Without it, your rate floats with the market — which can go either way. 🎲

When to lock: Many buyers lock after their offer is accepted, but you can lock earlier if you think rates are headed up. Right now at 6.22%, that's looking pretty attractive compared to where we were earlier this year.

Key questions to ask your lender:

• What does it cost? Many lenders offer free locks for 30-60 days, but you might pay for extensions.
• How long does it last? Make sure it covers your entire closing timeline with buffer room.
• What happens if rates DROP? Some lenders offer "float-down" options (usually for a fee).

Pro tip: If you're under contract and can lock below 6.2%, experts say don't wait around for perfection. You can always refinance later if rates crater, but waiting could cost you if hot economic data pushes rates back up. ⬆️

The Great ARM vs. Fixed Debate 🥊

ARMs (Adjustable-Rate Mortgages) are having a moment again. Here's the deal:

Fixed-rate (6.22% today): Your rate never changes. You're paying 6.22% whether rates go to 4% or 8%. Peace of mind, but you're locked in. 😌

5/1 ARM (5.58% today): You get that lower rate for 5 years, then it adjusts annually. That's 64 basis points cheaper right now. If you're planning to sell or refinance before year 5, this could save you thousands. 💰

Who should consider ARMs? People who:

• Plan to move in 5-7 years
• Expect income to increase significantly
• Think rates will drop and want to refinance later
• Want lower initial payments to qualify for more house

Who should avoid ARMs? Anyone who wants predictability, plans to stay forever, or would lose sleep over rate uncertainty. No shame in that game. 😴

💡 This Week's Money Hacks

For STR Investors: Triple Tax Win 🎰

If you're running a short-term rental, listen up because this stack is 🔥:

1. Cost Segregation Study: This fancy tax magic can accelerate depreciation and potentially save you five figures on taxes. Seriously. Get an estimate from our partner here — it's wild what this can do for your tax bill.

2. 0% Interest Furnishing: Need to furnish, renovate, or level up your amenities? Our funding partner offers 0% interest options. That's right, zero percent. Perfect for that hot tub or chef's kitchen that'll boost your nightly rate. 🛁👨‍🍳

3. STR-Specific Financing: Traditional lenders hate STRs. We don't. Connect with an STR specialist who actually gets the business model and can structure deals based on your rental income potential.

Stack all three and you're playing a completely different game than 99% of investors. 🎮

HELOC Rates at 2-Year Lows 📊

Home equity lines of credit are now at their most attractive rates all year, with the prime rate dropping to 7.00%. Some lenders are even offering intro rates as low as 5.99% for 12 months on lines up to $500,000. 🤯

Why this matters: Homeowners have nearly $36 trillion in equity sitting there. If you're one of the lucky ones with a 3-4% mortgage from the pandemic era, you're NOT selling. But you might want to tap that equity for home improvements, consolidating high-interest debt, or even funding investment opportunities.

The smart play: Keep your low-rate primary mortgage, take a HELOC for needed cash, pay it off aggressively. Rinse and repeat. It's like a financial Swiss Army knife. 🔪

The dumb play: Using a HELOC to fund a vacation and then carrying that balance for years. Don't be that person. 🏖️❌

📈 By The Numbers

🎯 The Bottom Line

Look, it's Black Friday and you're reading a mortgage newsletter. You're either really passionate about real estate or avoiding your family. Either way, we appreciate you. 😂

Here's what actually matters today: Rates are stable at near-term lows (6.22% is pretty dang good compared to where we've been), inventory is weird (up on paper, but sellers keep pulling listings), and the market is definitely shifting from the insanity of 2021-2022.

If you're thinking about making a move — whether that's a primary residence, investment property, or STR — now's actually a decent time to start conversations with lenders. Rates might tick lower, or they might bounce back. Nobody has a crystal ball, but what we DO know is that deals are getting done and smart buyers are finding opportunities. 🎯

For the investors out there: The regional divergence is creating serious opportunities. While Florida bleeds, the Midwest is absolutely cooking. Do with that information what you will. 🤔

Have a restful holiday weekend! We'll be back Monday with more rate updates and market intel. 🦃

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