🎉 The Lending Letter 🏡

New Year's Eve Eve: One Business Day Left to Make 2025 Count

Happy Tuesday! ☕ It's December 30th—the penultimate day of 2025—which means you're probably already mentally checked out and planning your New Year's Eve outfit. We get it. But before you pop that champagne tomorrow night, let's talk about what you can still accomplish in the next 48 hours that could literally save you thousands. 💰

Today's mortgage rate situation? Still holding steady. Your window to make smart financial moves before the calendar flips? Rapidly closing. Let's dive in. 🏊

📈 The Rate Reality: Holding Pattern Into the New Year

Rates crept up a single basis point today, which is basically the financial equivalent of a rounding error. We're sitting at 6.20%, and according to mortgage market analysts, this holding pattern makes sense. Why? Because the bond market is in vacation mode just like everyone else. 🏖️

Trading volume is thin, major economic reports won't drop until January, and most lenders are running skeleton crews until after New Year's. Translation: Don't expect fireworks in the rate department this week. But here's what you CAN expect: motivated lenders trying to hit year-end numbers. That's where opportunity lives. 👀

💰 Lender Promos: Last Call for 2025 Opportunities

🧠 Educational Corner: Understanding the 1% Rule for Rental Properties

Let's learn something useful today. If you're looking at investment properties, you've probably heard people throw around the "1% rule." But what does it actually mean, and does it still work in 2025? 🤔

The 1% Rule Explained: Your monthly rent should be at least 1% of the purchase price. So a $300,000 property should rent for at least $3,000/month. Simple math, right?

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

Okay, let's address the elephant in the room: you're probably not closing on anything by tomorrow. Even emergency closings take a few days at minimum. So does that mean this information is useless? Absolutely not. Here's what you CAN do before midnight tomorrow: 📋

1. Maximize 2025 Deductions
If you own rental properties, make sure you've captured all expenses for 2025. Property management fees, repairs, travel to inspect properties, home office deductions if you manage remotely—all of it counts. According to IRS Publication 527, you might be missing deductions you didn't even know existed. 💰

2. Make Strategic Property Improvements
Got a repair that could wait but would benefit your 2025 taxes? Get it done today or tomorrow. The key distinction: repairs are immediately deductible, while improvements must be depreciated. That leaky roof repair? Deduct it now. According to tax strategy guides, timing matters. 🔧

3. STR Owners: Last-Minute Deduction Plays
Operating a short-term rental? You've got unique opportunities. That new furniture set? Those upgraded linens? The smart locks and Ring doorbell? All potentially deductible if purchased and placed in service by December 31st. And if you're looking to scale up your STR operation in 2026, connect with our STR specialists who can help you structure financing properly. 🏖️

4. Cost Segregation Studies
If you bought a property in 2025 and haven't done a cost segregation study, you're potentially leaving huge deductions on the table. This is one of those things that sounds complicated but can literally accelerate tens of thousands in deductions from 27.5 years into Year 1. Get an estimate from our cost seg partner—even if you can't complete it by tomorrow, knowing your potential savings helps with tax planning. 📊

🎓 Personal Finance Hack: The December 31st Money Move Nobody's Talking About

📊 Market Intel: What's Actually Happening This Week

Let's cut through the holiday noise with some reality about the current market:

Volume is Dead (Which Creates Opportunity)
According to NAR data, transaction volume drops by 30-40% during this week between Christmas and New Year's. But here's the flip side: the properties still on the market are there for a reason. Sellers who didn't pull their listings are motivated. That's negotiating leverage. 🤝

Inventory is Quietly Building
While everyone's focused on holiday parties, inventory has been creeping up compared to last year. Not dramatically, but enough to shift the balance slightly toward buyers. Spring 2026 is setting up to have more options than spring 2025 did. 🏠

Rates Aren't Likely to Crater in Early 2026
Everyone keeps asking about rate predictions for next year. The honest answer? Nobody knows for certain. But based on Fed guidance and bond market signals, we're more likely to see rates range-bound in the low-to-mid 6% zone rather than dropping significantly. Plan accordingly. 📉

Economic Data to Watch in January
When markets reopen fully in January, we'll get a fresh batch of economic data: jobs reports, inflation numbers, consumer spending. According to the economic calendar, the first week of January is going to be data-heavy. That's when rates will start moving with purpose again. 📊

🎯 Should You Wait for "Better Conditions" in 2026?

The eternal question. Let's address it with data instead of hype:

According to Zillow's market analysis, home prices have continued modest appreciation even with rates around 6%. What does that tell us? There's still demand at current rate levels. People are buying because they found the right property, not because rates are "perfect." 🏡

Here's the math that matters: If rates drop 0.5% but prices rise 5%, you didn't save money—you just redistributed where the money goes. Lower rates often spark bidding wars and price increases. Historical data shows this relationship is pretty consistent.

The Real Question: Is there a property available right now that meets your goals? If yes, the rate is less important than the opportunity cost of waiting. You can refinance later if rates drop. You can't go back in time and buy a property someone else grabbed. ⏰

For investors specifically: Cash flow is king. If the numbers work at 6.20%, they work. Don't let perfect be the enemy of profitable. 💰

🌟 The Bottom Line: Making Every Hour Count

Look, we're not going to pretend this is the most action-packed week in real estate history. It's not. Most people are in hibernation mode, and that's totally fine. 🐻

But if you're reading this newsletter on December 30th, you're not "most people." You're someone who understands that opportunities don't wait for perfect timing. Whether it's locking in end-of-year tax deductions, making that strategic Roth conversion, or positioning for a January property purchase, every hour between now and midnight tomorrow has value. ⏳

Rates at 6.20% aren't exciting or dramatic. They're just... workable. And sometimes "workable" is exactly what you need to build wealth. According to long-term real estate return data, people who wait for perfect conditions usually just wait. People who act on good-enough conditions build portfolios. 🏘️

Tomorrow is New Year's Eve. We'll be talking about 2026 strategy, what to watch in January, and how to make the most of whatever the new year throws at us. But today? Today's about finishing 2025 strong. 💪

So go maximize those deductions, make those strategic moves, and set yourself up for success. Then pour yourself a drink tomorrow night knowing you didn't leave money on the table just because everyone else was already on vacation. 🥂

See you tomorrow for a special New Year's Eve edition! 🎉