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Dec 3: Today’s Rate Holds Steady — Here’s Why That Matters

A level-headed look at Wednesday’s numbers and the decisions they support.

Author

Alex Veytsman
December 03, 2025

📬 The Lending Letter 🏠

Hump Day Hold: Rates Are Playing It Cool

Happy Wednesday! ☕ You made it to the middle of the week, and we've got some actually decent news on the rate front. While everyone's busy stressing about holiday shopping and year-end everything, mortgage rates are staying surprisingly stable. Let's dive into what's happening today, December 3rd.

📊 TODAY'S 30-YEAR FIXED RATE
6.30%
According to Mortgage News Daily | Down 0.01% | As of 12/03/25

😌 Stability Is Actually the Story Today

Here's what's happening: rates are holding steady at 6.30%—down a tiny bit from yesterday. Not dramatic moves, no chaos, just... calm. Which in the mortgage world is actually pretty nice. 🧘

Think about it: we're sitting at 6.30% in early December, which is actually substantially better than where we were just a few months ago. Remember when everyone was freaking out about rates pushing toward 7%? Yeah, we're not there. This is what "pretty decent" looks like in 2025. 📈

🎯 Why This Rate Environment Actually Works

Stability is underrated. When rates are bouncing around like a ping pong ball, nobody wants to commit. But when they're holding steady in a reasonable range, suddenly you can actually make educated decisions and lock in with confidence. The bond market is basically giving us a gift right now—it's paying attention to economic data but not overreacting. That's rare. Use it. 💡

💰 Lender Promos: Your December Window

🏠 Need Financing for Any Property? With rates holding steady, this is actually prime time to lock something in. Fill out this quick form and we'll connect you with lenders who are actively competing for your business before year-end.

🏢 Investment Property Plans? December is the secret weapon month for investors. Less competition, motivated sellers, immediate tax benefits. Connect with our investment property specialists who understand that smart money moves when others are distracted.

🏖️ Building Your STR Empire? Planning for the 2026 booking season starts now. Get connected with STR loan specialists here who know exactly how to structure deals for vacation rental success.

🧠 Education Corner: Understanding ARM vs. Fixed in Today's Market

With rates at 6.30% for a 30-year fixed, let's talk about something people are quietly asking about: should you consider an ARM (Adjustable Rate Mortgage) right now? 🤔

According to today's rate data, you can get a 7/6 ARM at 5.86%—that's a 0.44% difference from the fixed rate. Let's break down when this makes sense and when it absolutely doesn't.

📊 The ARM Math That Actually Matters

What's a 7/6 ARM? Rate is fixed for 7 years, then adjusts every 6 months after that based on an index (usually SOFR these days). You're locked in at 5.86% until December 2032. Not bad. 📅

The Monthly Savings: On a $400,000 loan:

  • 30-year fixed at 6.30% = $2,475/month
  • 7/6 ARM at 5.86% = $2,368/month
  • You save $107/month or $1,284/year
  • Over 7 years, that's $8,988 in savings 💰

✅ When an ARM Makes Sense:

1. You're Not Staying Long-Term
Planning to sell or refinance within 7 years anyway? According to NAR data, the median homeownership duration is about 13 years, but if you're buying a starter home or investment property you'll flip, an ARM could save you thousands. 🏡

2. You Expect Income Growth
In a career with strong upward trajectory? The $107/month savings today matters more than potential rate increases in 2032 when you'll presumably be earning significantly more. Career surgeons, law associates, tech professionals—this is your play. 📈

3. You're Disciplined With Savings
Take that $107/month difference and actually invest it. In 7 years at 8% annual returns, that's roughly $11,700. Now you've built a cushion for potential rate adjustments later. 💪

❌ When Fixed Makes More Sense:

• You're buying your forever home - The 0.44% savings isn't worth the uncertainty risk over 30 years.

• Rates might drop significantly - If rates fall to 4-5% in a few years, everyone with a fixed 6.30% can refi. But ARM borrowers might not qualify or might face prepayment penalties. Check the terms. 📋

• You hate financial uncertainty - Sleep quality matters. If rate adjustments will stress you out, pay the extra $107/month for peace of mind. Mental health is worth something. 🧠

Pro Tip: If you go ARM route, make sure you understand the caps. Most have:

  • Initial adjustment cap (usually 2%)
  • Subsequent adjustment cap (usually 2% per adjustment)
  • Lifetime cap (usually 5% above initial rate)

So a 5.86% ARM could theoretically max out at 10.86%. Unlikely? Yes. Impossible? No. Read the fine print. Always. 🔍

🏘️ For Real Estate Investors: The December Tax Play

Alright, let's talk about why closing on an investment property before December 31st is basically like finding a cheat code. 🎮

The Depreciation Bonus Round:
According to IRS Publication 527, you can claim a full year of depreciation even if you only own the property for one day in 2025. Close on December 31st? You still get to depreciate the full year. It's not a loophole—it's literally how the tax code works. 📊

The Real Numbers:

  • Buy a $400,000 property (let's say $320,000 is the building value, $80,000 is land)
  • Annual depreciation: $320,000 ÷ 27.5 years = $11,636
  • Close in December 2025 = You get that full $11,636 deduction for 2025
  • At a 35% tax bracket, that's $4,073 back in your pocket 💸

But Wait, There's More:

A cost segregation study can accelerate even MORE depreciation by identifying components that depreciate faster than 27.5 years. We're talking about potentially $20,000-$50,000 in first-year deductions for a typical rental property. This isn't hype—this is math. And it's perfectly legal. 🎯

The STR Advantage:
If you're buying a short-term rental property, you might qualify for even better tax treatment if you materially participate in the business. Work with our STR specialists who understand these nuances and can structure your purchase accordingly. ⚡

💎 Personal Finance Hack: The 401(k) December Move

🎯 Year-End Contribution Strategy That Most People Miss

We're 28 days from the end of the year. If you haven't maxed out your 401(k) contributions, listen up because this could save you serious money. 💰

The 2025 Limits:

  • 401(k) employee contribution: $23,000
  • If you're 50+: Additional $7,500 catch-up = $30,500 total
  • These are PRE-TAX contributions (for traditional 401k)

Why December Matters:
According to IRS guidelines, you have until December 31st to maximize contributions for 2025. Unlike IRAs (which you can fund until April 15, 2026), 401(k) contributions must happen through payroll deductions by year-end. ⏰

The Math That Matters:

Let's say you're in the 24% federal tax bracket and you've contributed $18,000 so far. You have $5,000 left to max out. If you can afford to increase your withholding for the remaining paychecks:

  • Additional $5,000 contribution reduces your 2025 taxable income by $5,000
  • Tax savings: $5,000 × 24% = $1,200
  • Plus state tax savings (varies, but could be another $250-400)
  • Total: You just gave yourself a $1,400+ refund 🎁

The Catch: You need enough cash flow to handle the higher deduction from your paycheck. But if you've got cash sitting in savings earning 4%, this is a no-brainer—you're getting an instant 24%+ "return" through tax savings. The math is undeniable. 📊

Action Step for THIS WEEK:

  1. Log into your 401(k) account and check your YTD contributions
  2. Calculate how much you have left to max out
  3. Divide by remaining paychecks in 2025
  4. Adjust your contribution percentage ASAP (many plans need a few days to process changes)
  5. If you can't max it fully, contribute whatever you can—every dollar saves you taxes 💪

The Roth Alternative: If you're younger and expect to be in a higher tax bracket in retirement, consider Roth 401(k) contributions instead. You don't get the tax deduction now, but withdrawals are tax-free in retirement. According to Fidelity research, this makes sense for people under 35 or those expecting significant income growth. 📈

Pro Tip: If your employer offers matching, make sure you're getting the full match first. That's literally free money. A 100% instant return beats everything. Don't leave it on the table. 🎯

📊 Market Intel: What Stable Rates Actually Mean

Let's talk about what today's rate stability tells us about the bigger picture. Because 6.30% isn't just a number—it's a signal. 📡

The Bond Market Is Paying Attention:
According to bond market data, the 10-year Treasury is hovering in a pretty tight range. That means investors are basically saying "we're okay with where things are right now." Not euphoric, not panicking. Just... stable. And stable is actually really good for making decisions. 🎯

Housing Inventory Update:
Realtor.com data shows inventory is slowly creeping up compared to last year. Not dramatically, but it's moving. Translation: buyers have slightly more options, which means slightly more negotiating power. Especially in December when fewer people are actively looking. 🏡

The December Sweet Spot:
Here's what most people don't realize: December is actually one of the best months to negotiate on real estate. According to Zillow research, sellers who are still active in December are often highly motivated. Combine that with fewer competing buyers, and you've got leverage. Use it. 💪

🏖️ STR Owners: The Furnishing Strategy

Quick hit for short-term rental operators: If you just closed on a property or are about to, listen up. 🎧

The 0% Interest Play:
Our partner offers 0% interest financing for furniture, renovations, and amenities. In a world where money costs 6.30%, free money is... well, free money. 🛋️

Why This Matters: Instead of dropping $15,000-$30,000 cash to furnish your STR, you can:

  • Keep that cash in reserves for emergencies
  • Use it for another down payment on property #2
  • Invest it and earn returns while paying 0% on the furniture

It's not complicated: Leveraging 0% money to buy assets is always the right move. Always. 💰

The Tax Angle: Furniture and appliances in rental properties can be depreciated over 5-7 years. But with a cost segregation study, you might be able to accelerate those deductions even further. Get an estimate here to see what's possible. 📊

🎯 Your Wednesday Action Items:

Ready to make December count? Here's what to do:

🌟 The Wednesday Real Talk

Look, 6.30% isn't the 3% rates of 2020. But you know what? 2020 was an anomaly, not the norm. Historically, 6.30% is actually pretty reasonable. 📊

According to Freddie Mac's historical data, the average 30-year fixed rate since 1971 is around 7.75%. We're below that. And the wealth-building power of real estate hasn't changed—homeowners still have roughly 40x the net worth of renters on average. 🏆

The people who build wealth in real estate aren't the ones who time rates perfectly. They're the ones who buy good properties, structure deals intelligently, and hold long enough for appreciation and leverage to work their magic. That's it. That's the whole game. 🎯

So stop waiting for perfect conditions. They don't exist. What exists is 6.30% rates, motivated December sellers, year-end tax advantages, and opportunity for people who take action instead of overthinking. Be the person who takes action. 💪

Now go have a great rest of your Wednesday. You're halfway through the week. You've got this. 🚀

The Lending Letter
📬 Daily mortgage intel you can actually use
🎯 Because rates move daily, and so should your knowledge

See you tomorrow (Thursday) for another dose of mortgage market insights!

Disclaimer: This newsletter is for informational and entertainment purposes. Rates vary by lender, loan type, and borrower qualifications. Always consult licensed mortgage and tax professionals for your specific situation. Investment and tax strategies discussed require careful consideration of personal circumstances and risk tolerance.