🎄 The Lending Letter 🏡

December Kicks Off: Rates Are Playing Hard to Get

Happy Tuesday! ☕ We're officially into December, which means your inbox is about to be flooded with holiday sales emails. But before you start panicking about gift shopping, let's talk about something actually important: what mortgage rates are doing today.

🎯 December Kicks Off With a Rate Reality Check

So here's what's happening: rates are hanging out in the mid-to-high 6% range, and they're stubbornly refusing to budge much. The bond market is watching economic data like a hawk watching its prey, and every jobs report, inflation number, and Fed comment is making lenders twitchy. 😬

We're sitting at roughly 6.30% today, which is... well, it's actually pretty decent! We're talking about rates that are noticeably lower than where we were just weeks ago. Think of it like finding a great parking spot at the mall during December—you weren't expecting it, but you'll definitely take it. 🅿️

💰 Lender Promos: Your December Opportunity

🧠 Educational Corner: Understanding Discount Points

Let's talk about something that confuses almost everyone: discount points. And no, they're not like credit card points that get you a free flight to Tahiti. 🏝️

Here's the deal: One discount point costs 1% of your loan amount and typically reduces your interest rate by about 0.25%. So on a $400,000 loan, paying $4,000 upfront could drop your rate from 6.30% to 6.05%.

🏘️ For the Real Estate Investors: Year-End Strategy Session

Listen up, because December is actually one of the most strategic months for real estate investing. Here's why:

1. Motivated Sellers Everywhere
People who listed in fall and haven't sold yet? They're getting nervous. Holiday travel plans are messing with showing schedules. Year-end tax considerations are making people antsy. This is negotiation heaven. 🤝

2. Tax Deductions Start Immediately
Close on an investment property in December, and you can start deducting expenses (mortgage interest, property taxes, depreciation) for the entire year. Even if you only own it for three weeks in 2025, those deductions still count. It's like finding money in your winter coat pocket. 💸

3. The STR Winter Play
Everyone thinks summer is STR season, but winter properties in the right markets (ski towns, warm weather destinations, holiday spots) can absolutely crush it. And guess what? Buying now means you're set up for the entire 2026 high season. Talk to our STR specialists about properties that make money even when it's cold outside. ❄️

Level Up Your STR Game:

• 📊 Get a cost segregation study before year-end and potentially accelerate deductions worth tens of thousands. Yes, it's that powerful.
• 🛋️ Need to furnish that new property? Our partner offers 0% interest funding. It's like free money, but legal.

🎓 Personal Finance Hack: The HELOC Strategy Nobody Talks About

📊 Market Intel: What's Actually Happening Out There

Let's cut through the noise with some real talk about the current market:

Inventory is Slowly Improving
According to Realtor.com data, active listings are up compared to last year. Not dramatically, but it's moving in the right direction. Translation: buyers have slightly more options, which means slightly more negotiating power. 🎯

Price Growth is Moderating
We're not seeing the crazy 20% year-over-year gains anymore, but prices are still climbing at a more sustainable 3-5% pace. This is actually healthy—sustainable appreciation beats boom-bust cycles any day. 📊

The December Dead Zone is Real
Transaction volume drops every December as people focus on holidays, but this creates opportunity. Serious sellers still on the market are often highly motivated. If you're looking to buy, you might find deals others are too busy shopping for gifts to notice. 🎁

🎯 Should You Wait for Lower Rates in 2026?

Everyone's favorite question. Let's address it head-on:

The Federal Reserve has indicated they might cut rates in 2026, but here's what most people don't understand: mortgage rates don't directly follow the Fed rate. They follow the 10-year Treasury yield, which moves based on inflation expectations, economic growth, and about seventeen other factors that even economists argue about. 🤓

Here's the calculus: Even if rates drop 0.5% in 2026, will home prices stay flat? Historically, when rates drop, home prices rise as more buyers enter the market. According to Freddie Mac research, you might save on interest but pay more for the house itself—it's often a wash.

The Real Play: Buy when you find the right property at the right price. You can always refinance later if rates drop significantly. But you can't go back in time and buy that perfect investment property that someone else snagged while you were waiting for "better conditions." ⏰

🌟 The Bottom Line

December is actually an underrated month in real estate. While everyone else is distracted by holiday shopping and family obligations, smart investors and buyers are finding opportunities others miss. 🎁

Rates around 6.30% aren't exciting, but they're workable. And remember: the tax advantages of real estate investing haven't changed. Depreciation, interest deductions, and strategic financing still make rental properties one of the best wealth-building tools available—even at current rates.

Plus, you know what's more expensive than a 6.30% mortgage? Waiting another year while prices climb another 5% and that perfect property gets snapped up by someone who wasn't overthinking things. Just saying. 🤷

Stay sharp, stay informed, and remember: the best time to plant a tree was 20 years ago. The second best time is today. Even if it's a little chilly outside. 🌳