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Dec 13: 🎁 Rates up slightly, but December deals are real

Your weekend mortgage brief with actionable money moves before year-end 🎯

Author

Alex Veytsman
December 13, 2025

🎁 The Lending Letter 🏡

Weekend Edition: Rates Tick Up, But Don't Sleep on December Deals

Happy Saturday! ☕ While you're probably wrapping gifts or stress-shopping for that one person who "has everything," let's talk about what happened with mortgage rates this week—and why the next 18 days before year-end might be more important than you think. 🎄

📊 FRIDAY'S 30-YEAR FIXED RATE
6.32%
Friday's close: Up 0.06% | Per Mortgage News Daily | As of 12/13/25

📈 The Week in Rates: A Small Bump, But Context is Everything

So rates crept up slightly this week, closing Friday at 6.32% (markets are closed on Saturdays, so we're looking at Friday's numbers). Before you panic, let's add some perspective: we're still hovering near the lowest rates we've seen in months. This tiny bump? Totally normal market noise, especially in December when trading volume gets thinner than your patience at the mall checkout line. 🛍️

Here's what's actually driving things: the 10-year Treasury yield has been bouncing around based on inflation data and Fed speculation. The market's trying to figure out if the Fed will cut rates in early 2025. Honestly? Even economists with fancy degrees can't agree, so we're all just along for the ride. 🎢

💡 Weekend Wisdom

A 6.32% rate isn't sexy, but it's workable. And here's the thing: waiting for the "perfect" rate is like waiting for the perfect time to have kids—there is no perfect time. The right time is when you find the right property at the right price. Everything else can be refinanced later. 🏠

💰 Lender Connections: Your Year-End Fast Track

🏠 Need a Loan for Any Property? December's thin competition means lenders are hunting for deals to close before New Year's. Get matched with motivated lenders here who want to hit their year-end numbers.

🏢 Investment Property on Your Mind? Smart investors are buying now while the holiday slowdown creates negotiating leverage. Connect with investment specialists here who understand that December deals can set up your entire 2026.

🏖️ Building an STR Portfolio? Want to lock in properties before spring when everyone else wakes up? Talk to STR financing experts here who know how to make the numbers work.

🎓 Educational Deep Dive: The PMI Removal Strategy Nobody Talks About

Let's talk about Private Mortgage Insurance (PMI)—that monthly fee you pay when you put down less than 20%. Most people know they're paying it, but very few know the tricks to ditch it early. And I mean years early. 💰

Here's the standard story: PMI automatically drops off when you hit 78% loan-to-value (LTV) through regular payments. But here's what most people don't know: you can request PMI removal as soon as you hit 80% LTV—and you don't have to wait for your loan to amortize naturally.

🎯 The Three Fast-Track Methods

1. Home Value Appreciation
If your home has gone up in value (and let's be honest, in this market it probably has), you can get a new appraisal. According to Zillow's data, home values have climbed 3-5% in most markets this year. That appreciation alone might push you past 80% LTV without making extra payments. The catch? Expect to pay $300-500 for the appraisal, but if it saves you $100-200/month in PMI, that's a 2-3 month payback period. 📊

2. Strategic Extra Payments
Making extra principal payments to hit that 80% threshold faster can save you thousands. Run the numbers: if you're paying $150/month in PMI, that's $1,800/year. Throwing an extra $5,000 at principal might get you to 80% LTV 2-3 years faster, saving you $5,400 in PMI over that period. That's a 108% return on investment. Better than any savings account. 💪

3. Remodel + Reappraise
Planning a kitchen or bathroom remodel anyway? Strategic timing matters. Complete your renovations, then get that appraisal. Home improvements can add significant value, and if it pushes you over 80% LTV, you've not only improved your home but also eliminated a monthly expense. Double win. 🏆

The Fine Print: Most lenders require you've had the loan for at least 2 years before they'll consider removing PMI based on appreciation alone. If you've made significant improvements, that waiting period might be shorter. And yes, they have to remove it if you meet the criteria—it's federal law.

🏘️ For Real Estate Investors: The December 31st Deadline Playbook

Okay investors, listen up. We're 18 days from year-end, and if you close on a property before December 31st, you unlock some serious tax advantages. Let's talk strategy. 🎯

The Depreciation Play
Rental properties are one of the few investments where you get tax deductions just for owning them. Close before year-end, and you can claim depreciation for the full year 2025, even if you only own it for two weeks. On a $400,000 property with $320,000 in depreciable basis (building, not land), that's about $11,636 in depreciation for the year—deductible income you didn't have to actually spend. 📉

Bonus Depreciation Supercharger
Here's where it gets spicy: Get a cost segregation study before year-end and you can accelerate a huge chunk of that depreciation into year one. We're talking potentially $30,000-$80,000 in deductions depending on property value. That's real money back at tax time. Your CPA will high-five you. 🙌

STR Investors: The 2026 Season Setup
For those running short-term rentals, buying now means you're fully operational for the 2026 peak season. Winter closings = spring/summer revenue. And if you're in a ski market? You're literally buying during your peak season—leverage that for negotiations. Connect with STR specialists who understand seasonal market dynamics. 🎿

💡 Pro Investor Stack:

💎 Personal Finance Power Move: Tax-Loss Harvesting Before Year-End

🎓 What Is Tax-Loss Harvesting?

Quick refresher: tax-loss harvesting is selling investments at a loss to offset capital gains and reduce your tax bill. It's 100% legal, encouraged by the IRS, and criminally underused by regular investors who think it's "too complicated." Spoiler: it's not. 🧠

The Basic Math:
Let's say you sold some stock this year for a $10,000 gain (congrats 🎉). Without tax-loss harvesting, you're paying capital gains tax on that full $10,000. But if you also have some losers in your portfolio—say, that tech stock down $4,000—you can sell it before December 31st and use that loss to offset your gains. Now you're only paying tax on $6,000 instead of $10,000. According to IRS guidelines, that's perfectly legal. 💼

The Extra Bonus:
If your losses exceed your gains, you can use up to $3,000 of those losses to offset ordinary income. And if you still have losses left over? They carry forward to future years indefinitely. This isn't a one-time trick—it's a multi-year strategy. 🎯

The Wash Sale Rule (Don't Get Caught):
Here's the catch: you can't sell a stock at a loss and immediately buy it back. The wash sale rule says you have to wait 30 days before repurchasing the same or "substantially identical" security. But you CAN buy a similar investment immediately. Sold an S&P 500 fund at a loss? Buy a different S&P 500 fund from another provider. You maintain market exposure while still claiming the loss. Smart, right? 🧩

Real Estate Investor Angle:
If you sold a rental property this year at a gain, tax-loss harvesting in your brokerage account can help offset some of that tax hit. Your CPA can stack these strategies—depreciation recapture, 1031 exchanges, and investment losses—to minimize what you owe Uncle Sam. We're talking about keeping thousands more in your pocket. 💰

Action Item for This Weekend:
Open your brokerage account, identify positions that are down, and talk to your tax advisor about harvesting those losses before December 31st. We're talking about a few hours of work that could save you thousands. Most people will spend more time shopping for holiday gifts this weekend than optimizing their taxes. Don't be most people. 🎁

📊 Market Intel: The December Reality Check

Let's talk about what's actually happening in real estate right now, because the market doesn't stop for holiday shopping. 🛍️

Transaction Volume is Down (Duh)
NAR data shows December is historically the slowest month for real estate. Everyone's focused on holidays, school breaks, and avoiding the hassle of moving in winter. But this creates an opportunity: serious sellers still on the market right now are MOTIVATED. They're not listing in December because it's fun—they need to sell. 🎯

Inventory is Quietly Building
According to Realtor.com's latest data, active listings are up year-over-year. Not dramatically, but consistently. More supply = more options = slightly better negotiating position for buyers. We're not in a buyer's market yet, but we're not in the insane seller's market of 2021-2022 either. It's... dare I say... balanced? (Gasp!) 😱

Price Growth is Normalizing
Home values are still climbing, but at a sustainable 3-5% annually rather than the bonkers 15-20% we saw a couple years ago. This is actually healthy. Steady appreciation beats boom-bust cycles every time. Your investment compounds reliably without the panic of "am I buying at the peak?" 📈

🤔 The Great Debate: Lock Now or Wait for 2025?

Everyone's asking this question, so let's address it with actual data instead of wishful thinking. 📊

The Federal Reserve has signaled they might cut rates in 2025. But here's what most headlines miss: the Fed rate and mortgage rates aren't the same thing. Mortgage rates track the 10-year Treasury yield, which moves based on inflation expectations, economic growth, and market sentiment. Sometimes they move together with the Fed rate, sometimes they don't. 🤷

According to Freddie Mac's forecast, even if rates drop 0.5% in 2025, home prices typically rise when rates fall (more buyers enter the market = more demand = higher prices). You might save $100/month on interest but pay $15,000 more for the house. The math doesn't always work out like you'd hope. 🧮

The Smart Play: Buy when you find the right property at the right price. Lock in that deal. Then, if rates drop significantly next year, refinance. But don't miss out on a great property today hoping for hypothetically better conditions tomorrow. As they say: you date the rate, you marry the house. You can always refinance. You can't go back in time to buy that perfect duplex someone else grabbed. ⏰

🎯 Ready to Make Moves?

Here's your complete action menu:

🌟 The Weekend Wrap

Here's your Saturday summary: Rates ticked up slightly to 6.32%, but we're still in workable territory. December's slow market creates opportunities for smart buyers and investors who aren't distracted by holiday chaos. And with 18 days left in the year, there are legitimate tax advantages to closing before January 1st. ⏰

Whether you're a first-time homebuyer tired of renting, an investor building your portfolio, or an STR operator planning your 2026 expansion, the fundamentals haven't changed: real estate remains one of the best wealth-building tools available. Leverage, appreciation, depreciation, and cash flow still work at 6.32% interest. 💪

So while everyone else is stress-shopping for ugly sweaters and fruitcakes, smart money is quietly identifying opportunities, running numbers, and positioning for a strong 2026. Which side do you want to be on? 🎄

Enjoy your weekend, make smart money moves, and remember: the best investment you can make is in your own financial education. That's why you're reading this instead of doom-scrolling social media. Well done. 👏

The Lending Letter
📬 Your daily dose of mortgage intel
🚀 Because rates move fast, and so should you

We'll be back Monday morning with fresh rates, new strategies, and zero boring parts. 📈

Disclaimer: This newsletter is for informational and entertainment purposes only. Not financial, investment, legal, or tax advice. Rates and terms vary by lender and borrower qualifications. Always consult with licensed professionals for your specific situation. Tax strategies mentioned should be discussed with a qualified tax advisor before implementation.