🎅 The Lending Letter 🏠

Saturday Chill Session: Markets Closed, But Opportunities Are Still Open

Happy Saturday! 🎄 Four days until Christmas, and while most people are frantically wrapping presents or arguing about whether Die Hard is a Christmas movie (it is, fight me), let's talk about something way more interesting: what happened with rates this week and why next week could be wild.

Markets are closed today, so we're looking at Friday's final numbers. Spoiler alert: rates ticked up slightly, but before you stress-eat another cookie, let me explain why this might actually set up an interesting play for anyone looking to make moves in early 2026. 🍪

🎁 The Christmas Week Market Reality

Here's what you need to know: mortgage rates closed Friday at 6.25%, up just a hair from Thursday. According to Mortgage News Daily's analysis, this tiny uptick is mostly noise—bond markets are getting light heading into the holiday, and traders are already mentally checked out. 🏖️

The real story? We're in the dead zone. That beautiful period between Christmas and New Year's where serious business slows down, but opportunities for smart buyers and investors actually heat up. Think of it like Black Friday for real estate—everyone else is distracted, so the people still paying attention get the good deals. 🎯

🎯 Holiday Lender Promos: Strike While Everyone's Distracted

🧠 Education Station: Understanding Rate Locks in Volatile Times

Let's talk about something that confuses almost everyone but becomes super important when rates are bouncing around: rate locks. And no, this isn't your standard "lock in your rate!" sales pitch. This is actually interesting. 🔐

Here's the deal: A rate lock is a commitment from your lender to honor a specific interest rate for a set period (usually 30-60 days). But here's what most people don't know...

🏘️ For Real Estate Investors: The Year-End Tax Scramble

OK, real talk time. We've got 10 days left in 2025. If you're a real estate investor and you haven't optimized your tax situation yet, you're not alone—but you're running out of time. Let's fix that. 🏃

1. Cost Segregation Before Year-End = Five-Figure Tax Savings
If you bought any investment property in 2025, cost segregation is your secret weapon. This isn't some shady loophole—it's an IRS-approved method to accelerate depreciation. According to IRS Publication 946, you can reclassify parts of your property (flooring, fixtures, landscaping) from 27.5-year depreciation to 5, 7, or 15-year schedules. 💰

Translation? Instead of deducting $14,500/year on a $400K rental property, you might deduct $50,000+ in year one. That's $10,000-$15,000 back in your pocket if you're in the 30-35% tax bracket. Get a cost seg estimate from our partner here before December 31st. No joke, this pays for itself immediately. 📊

2. The STR Bonus Depreciation Play
Here's something wild: if you own a short-term rental (average guest stay under 7 days), it's classified as a business, not a rental property. Why does this matter? You might qualify for bonus depreciation that traditional rental properties can't touch. The IRS rules allow immediate expensing on a huge chunk of your property's value. 🎯

If you're thinking about STR investing, our STR specialists know exactly how to structure these deals for maximum tax efficiency. And if you need to furnish your property? We've got a 0% interest funding partner that makes the setup costs way less painful. 🛋️

3. The December Closing Advantage
Close on an investment property between now and December 31st, and all your deductions start in 2025—even if you only owned it for a week. Mortgage interest, property taxes, depreciation, operating expenses... all deductible in 2025. That's like getting a 10-month head start on tax savings. ⚡

Sellers still on the market right now? They're motivated. Either they overpriced originally, had a deal fall through, or need to close for their own year-end reasons. Connect with investment property specialists who know how to spot these opportunities and close fast. 🎯

💰 Personal Finance Hack: The Lazy Person's Tax-Loss Harvesting

📊 Weekend Market Thoughts: What Happened This Week

Let's zoom out and look at the bigger picture:

Rates Stayed Relatively Stable
Despite all the noise and predictions, Mortgage News Daily's data shows rates mostly held in the 6.20%-6.30% range this week. That's actually good news—stability beats volatility any day of the week. 📈

Housing Inventory Creeping Up
Realtor.com's latest numbers show active listings continue to slowly increase year-over-year. More inventory = more options = better negotiating position for buyers. The "impossible market" narrative is finally starting to crack. 🏘️

Holiday Slowdown is Real
Transaction volume always drops between Thanksgiving and New Year's. But according to NAR data, the serious buyers and sellers still active during this period tend to actually close deals. Less tire-kicking, more action. If you're making moves now, you're competing with other serious players, not just browsers. 🎯

🤔 The Big Question: Should You Wait for 2026?

Everyone asks this. Let me give you the honest answer:

Nobody knows what rates will do. Anyone who tells you they do is lying or selling something. But here's what we DO know:

📉 Lower rates = more competition: When rates drop, buyers flood back into the market. That perfect property you're eyeing? It'll have 8 offers by noon. Zillow's research consistently shows inverse correlation between rates and bidding wars.

📈 Higher rates = negotiating power: At 6.25%, many would-be buyers are sitting on the sidelines. That means sellers are more willing to negotiate, cover closing costs, do repairs, or drop their price. This is actual leverage you can use RIGHT NOW. 💪

🔄 You can always refinance: Buy the house, not the rate. If rates drop significantly in 2026 or 2027, refinancing is straightforward. But you can't go back in time and buy that investment property someone else grabbed while you were "waiting for better conditions." ⏰

The Math: Even if rates drop 0.75% next year, if home prices rise 5% (conservative estimate based on Freddie Mac forecasts), you're paying more for the same house. The interest savings get eaten by higher purchase price. Run the numbers—it's often a wash or worse. 📊

🎄 The Bottom Line

Look, I get it. The holidays are stressful enough without thinking about mortgages and tax strategies. But here's the thing: the people who build wealth are the ones who act when everyone else is checked out. 🎯

We've got 10 days left in 2025. Rates are at 6.25%—not amazing, but definitely workable. Inventory is better than it was. Sellers are motivated. And tax advantages are sitting there waiting to be claimed. ⏰

While everyone else is arguing about Christmas movies and eating leftover cookies, the smart money is making moves. According to real estate investing data, some of the best deals of the year happen in December—simply because there's less competition. 💰

So yeah, enjoy your weekend. Watch Die Hard (the ultimate Christmas movie). Eat too much food. But also? Maybe spend 10 minutes reviewing your investment portfolio for tax-loss harvesting opportunities. Or reaching out to see what loan options look like. Or getting that cost seg analysis done before year-end. 📊

Future you will thank present you. Trust me on this one. 🚀