🎄 The Lending Letter 🏡

Friday, December 12th: TGIF—Rates Drop & Your Weekend Action Plan

Happy Friday! 🎉 You made it through another week. While your inbox is probably drowning in "Last Chance Holiday Sale!!!" emails, here's something that actually deserves your attention: mortgage rates dropped today. Yeah, we said it. Down 4 basis points might not sound sexy, but in this market, we'll take our wins where we can get them. 📉

Plus, it's Friday the 12th (not the scary one), which means you've got the weekend to either pretend you're going to be productive or actually line up your end-of-year real estate moves. Spoiler: We're here to help with option two. ☕

🎯 Why Today's Drop Actually Matters

Look, we're not going to pretend that 6.26% is some magical number that changes everything. But here's why this matters: rates have been bouncing around the 6.30% mark for weeks, and every little dip creates opportunity for people who are paying attention. 👀

According to today's MND data, this movement is tied to bond market reactions to inflation signals. Translation: The market thinks inflation might be cooling slightly, and lenders are adjusting accordingly. Will it last? Who knows. But it's happening today, and that's what matters for this newsletter. 📊

💰 Lender Promos: Last-Call December Deals

🧠 Educational Corner: The Rent vs. Buy Calculation Everyone Gets Wrong

Let's talk about something that drives us crazy: the way most people calculate whether they should rent or buy. And spoiler alert—almost everyone does it wrong. 🤦

Here's what most people do: They compare their monthly rent to the monthly mortgage payment (principal + interest) and call it a day. "Rent is $2,500, mortgage would be $2,800, so renting is cheaper!" Case closed, right? Wrong. So, so wrong. 🚫

🏘️ For the STR Operators: The December Setup Strategy

Alright STR folks, listen up. Everyone thinks buying a short-term rental in December is crazy because "it's not summer" and "who books Airbnbs in winter?" Those people are leaving money on the table. Here's why December is actually strategic: 💰

1. New Year's Bookings Are MASSIVE
January 1-7 is one of the highest-booking weeks of the entire year for STRs. People escape their families, take "New Year New Me" trips, and book last-minute holiday extensions. If you close in December, you literally own the property for the highest-demand week. According to AirDNA's seasonal data, New Year's week can generate 2-3x normal revenue in many markets. 📈

2. Tax Year = Immediate Depreciation
Buy an STR in December, and you can depreciate the entire building value (27.5 years) starting in 2025. Or better yet, do a cost segregation study and accelerate 20-40% of the property's value into immediate deductions. We're talking potentially five-figure tax savings for buying just 2 weeks earlier than January. 💸

3. Furnishing with 0% Interest
Here's a move most people don't know about: Once you close, you need to furnish and stage the property anyway. Our partner offers 0% interest funding for STR furnishing and renovations. Yes, you read that right. Zero percent. It's basically free money for up to 12 months, which gives your property time to generate revenue before you even have to pay back the furnishing costs. 🛋️

4. Less Competition for Good Properties
Most STR buyers are on vacation themselves or waiting until "after the holidays" to start looking. That means motivated sellers and less bidding competition. Talk to our STR loan specialists about properties that are sitting on market right now with zero offers. These are the deals. 🎁

The Smart Play: Start your search this weekend. Run the numbers on 3-5 properties. Get pre-approved with an STR-savvy lender here. Close before year-end. Furnish with 0% financing. List on Airbnb for New Year's. Cash flow in January. Do the cost seg study in February. Write off massive depreciation on your 2025 taxes in April. That's the playbook. 📋

💳 Friday Finance Hack: The "Debt Avalanche with a Twist" Method

📊 Market Intel: What's Moving Behind the Scenes

Let's talk about what's actually happening in the market this week, beyond just today's rate movement: 🔍

Bond Market is Watching Inflation Like a Hawk
The 10-year Treasury yield (which mortgage rates follow) has been bouncing between 4.2% and 4.4% all week. According to CNBC's bond market data, traders are pricing in expectations that the Fed might cut rates in early 2026, but they're not betting the farm on it. Translation: Rates will likely stay in this 6-6.5% range through year-end unless something dramatic happens. 📈

Inventory is Finally Loosening
Realtor.com's latest data shows active listings up 13% compared to last December. That's meaningful. More inventory = more options = slightly more negotiating power for buyers. The "lock-in effect" (people trapped by low rates refusing to sell) is slowly unwinding as people realize life happens regardless of interest rates. 🏘️

December Closings are Time-Sensitive
Here's what most people don't realize: lenders take days off between December 24-January 1st. Not everyone, but enough people that processing slows to a crawl. If you need to close before year-end, you're essentially working with a December 20th deadline for any final documents or funding. That's 8 days away. Just FYI. ⏰

Appraisals Are Taking Longer
Holiday season means appraisers are busier (year-end rush) and also taking time off (holidays). Industry data shows appraisal timelines stretching from 7-10 days to 14-21 days in December. Build in buffer time if you're under contract. 📅

🎯 Your Weekend Homework (Only If You Want To)

Look, we're not your boss. Do whatever you want this weekend. But IF you're serious about making moves before year-end, here's your action plan: 📋

🌟 The Friday Bottom Line

Rates dropped 4 basis points today, which is nice. But here's what matters more: you have 13 days left to close on properties that will count for 2025 tax purposes. That's 13 days to lock in depreciation, 13 days to start building equity, 13 days to stop throwing rent money into the void. ⏰

Is 6.26% perfect? No. Is it workable? Absolutely. And remember what we covered today—when you factor in tax benefits, appreciation, and principal paydown, owning at 6.26% often beats renting at any rate if you're staying put for more than 5 years. The math doesn't lie, even if it's not as sexy as 3% rates were. 🧮

Plus, all those people waiting for "perfect conditions"? They've been waiting since 2022, watching prices climb 15-20% while they saved a couple points on interest. Don't be that person. Do the math, make the move, adjust later if needed. 📊

Also, seriously, if you're an STR investor and you're not looking at December deals, you're leaving money on the table. Like, actual five-figure amounts of money. Just saying. 💸