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Dec 6: Rates Are Up, But Smart Money Knows What to Do

Weekend Reading: Why December Rate Locks Matter Right Now 🔒

Author

Alex Veytsman
December 06, 2025

📬 The Lending Letter 🏡

Saturday December 6th: Weekend Edition - Rates Tick Up, Opportunities Don't

Happy Saturday! ☕ While most people are sleeping in or running errands, we're here delivering what matters: mortgage rate updates and actionable intel. Because the mortgage market doesn't care if it's the weekend, and neither do serious buyers and investors. 💪

Today's rate movement is interesting. We saw a tiny uptick—nothing dramatic, but enough to remind us that rates are never guaranteed to keep going down. Let's dig into what's happening on this first Saturday of December, and what you should be thinking about this weekend. 🤔

📊 TODAY'S 30-YEAR FIXED RATE
6.27%
According to Mortgage News Daily | December 6, 2025 | ↑ +0.03 from yesterday

🎢 What's Behind Today's Rate Bump?

So rates crept up by 0.03% today. Before you panic, let's put this in perspective: that's basically nothing. We're talking about a $6 difference in monthly payment on a $400,000 loan. You've spent more on brunch this morning. 🥞

But here's what is interesting: according to this week's bond market data, the 10-year Treasury yield ticked up slightly. Why? Economic data released this week showed the job market is still stronger than expected, which makes the Federal Reserve less likely to cut rates aggressively in 2026. 📈

Translation: The market is recalibrating expectations. We're not in "rates are definitely going down soon" territory anymore. We're in "rates might stay here for a while" territory. And honestly? That clarity is useful for planning. 🎯

🤔 The Weekend Question: Lock or Float?

If you're in the middle of a mortgage process right now, you're probably wondering whether to lock your rate or float into next week. Here's the thing: nobody has a crystal ball. But given this week's uptick and the economic data trend, most experts suggest locking if you're happy with the rate and closing soon.

Weekend tip: Use your downtime to comparison shop. Rates between lenders can vary by 0.25-0.50%, which is WAY more than today's 0.03% bump. 💡

💰 Lender Promos: December Deals Are Here

🏠 Need Financing for Any Property? Primary residence, vacation home, or that fixer-upper you've been eyeing? Fill out this quick form and we'll connect you with lenders offering competitive December rates. Many are pushing to hit year-end quotas, which means better terms for you. 🎁

🏢 Investment Property Goals? Whether you're buying your first rental or your fifteenth, December is prime hunting season. Motivated sellers + end-of-year tax planning = opportunity. Connect with investment property specialists here who understand cash flow modeling and ROI better than most CPAs. 📊

🏖️ Short-Term Rental Plans? 2026 is less than a month away. If you're serious about building an STR portfolio, now's the time to get financing lined up. Talk to STR loan specialists here who know exactly how to structure deals for maximum profitability. 🌴

🎓 Educational Corner: The Truth About PMI (And How to Ditch It)

Let's talk about PMI—Private Mortgage Insurance. It's one of those things everyone mentions during homebuying, but nobody really explains properly. Time to fix that. 🔧

What It Is: PMI is insurance that protects the lender (not you) if you default on your loan. You're required to pay it if you put down less than 20% on a conventional loan. Typical cost? Around 0.5-1.5% of your loan amount annually, which translates to roughly $100-300 per month on a $400,000 loan. 💸

💡 Four Ways to Avoid or Eliminate PMI

1. The Classic 20% Down
Obvious but worth stating: Put 20% down and PMI never applies. If you have the cash, this is the cleanest route. But don't drain your entire emergency fund to hit 20%—that's usually not smart. 🎯

2. Piggyback Loan (80-10-10)
This is clever: Take out a first mortgage for 80% of the home price, a second mortgage (HELOC or home equity loan) for 10%, and put 10% down yourself. According to NerdWallet's analysis, the interest on both loans is often tax-deductible, while PMI isn't. Math that works in your favor. ✅

3. Lender-Paid PMI (LPMI)
Some lenders will pay your PMI in exchange for a slightly higher interest rate. Sounds bad, but here's the kicker: that higher interest rate is tax-deductible, PMI isn't. Plus, the increased interest goes away if you refinance. Run the numbers carefully—LPMI can save you thousands depending on your tax bracket. 📈

4. Request PMI Removal at 80% LTV
Here's what nobody tells you: By law, lenders must automatically cancel PMI when you reach 78% loan-to-value (LTV). But you can request cancellation at 80% LTV. That 2% difference? That's potentially months of PMI payments you don't have to make. According to the Consumer Financial Protection Bureau, you need to formally request it in writing and may need a new appraisal (usually $400-600). Still worth it if you're saving $200+ per month. 💰

Pro Move for 2025: Home prices have appreciated significantly over the past few years. If you bought in 2022-2023 with less than 20% down, there's a good chance you've hit 80% LTV through appreciation alone. Get a new appraisal before year-end and potentially eliminate PMI starting in January. That's immediate cash flow improvement for 2026. 🚀

Important caveat: FHA loans have MIP (Mortgage Insurance Premium), not PMI, and the rules are different. If you got an FHA loan after 2013 with less than 10% down, MIP stays for the entire loan term. Only way to remove it? Refinance into a conventional loan once you have 20% equity. Check HUD's official guidelines for details.

🏘️ For Real Estate Investors: Year-End Power Moves

Okay investors, let's talk strategy. We're 25 days from 2026, which means this is your last chance to make moves that impact your 2025 taxes. Here's what smart money is doing right now: 💼

Cost Segregation Before December 31st
If you bought investment property in 2025, you can potentially accelerate depreciation and create a massive deduction for this year. We're talking about five-figure tax savings that can offset W-2 income if you qualify as a real estate professional. Get a cost segregation study estimate ASAP—most firms can still complete studies before year-end if you act this week. ⚡

The December Closing Strategy
Close on an investment property before December 31st, and even though you only own it for a few weeks in 2025, you can deduct: mortgage interest, property taxes, insurance, utilities, maintenance, depreciation, and more. According to IRS Publication 527, these deductions are prorated but still valuable. It's like getting a tax discount on your property just for closing in December. 🎁

STR-Specific Opportunities
Winter STR properties in the right markets (ski towns, warm-weather destinations, Snowbird havens) can absolutely print money. And here's the kicker: you can start booking 2026 reservations NOW while owning the property in 2025, potentially creating deductions this year against next year's income. Connect with STR financing specialists who understand the seasonal cash flow game. ⛷️

Level Up Your Properties:

  • 🛋️ Need to furnish your rental? Our partner offers 0% interest funding. It's literally free money (for qualified buyers) that lets you keep your cash working elsewhere. Smart operators use other people's money whenever possible.
  • 📊 Tax savings through cost segregation can be reinvested into your next property. This is how you scale efficiently without waiting years to accumulate down payments.

💳 Personal Finance Hack: The December Credit Card Play

🎯 Credit Utilization Timing Trick (Most People Get This Wrong)

Here's a credit score hack that almost nobody knows about, but it can boost your score by 20-50 points fast. And if you're applying for a mortgage soon, those points could save you thousands. 🚀

The Setup: Your credit utilization ratio (how much credit you're using vs. your total available credit) accounts for about 30% of your FICO score. FICO says using less than 10% of your available credit is ideal, but here's what most people don't realize: your utilization is typically reported once per month, whenever your statement closes. 📅

The Hack:

Step 1: Find Your Statement Close Date
This isn't your payment due date—it's usually 3-4 weeks before. Check your credit card's terms or call and ask. This is the date your issuer reports your balance to the credit bureaus.

Step 2: Pay Down BEFORE Statement Close
Most people pay their credit card bill after receiving the statement. But if you're carrying balances and applying for a mortgage, pay down your cards BEFORE the statement closes. The credit bureaus will see a lower utilization, even though you haven't changed your actual spending. 🎯

Real Example:
Let's say you have a $10,000 credit limit and typically carry a $3,000 balance (30% utilization—not great). Your statement closes on the 15th of each month. Instead of waiting for the statement to arrive, pay it down to $500 on the 13th. When your card issuer reports to the bureaus, they see 5% utilization instead of 30%. According to Experian's data, this can boost your score significantly, often within one billing cycle. 📈

Advanced Move: If you're planning to apply for a mortgage in January, do this hack NOW in December. Pay down all your cards before their December statement close dates. Your credit score will reflect the lower utilization when lenders pull your report in January. This is especially powerful if you've been holiday shopping and your balances are higher than usual. 🎄

The Catch: This only works if you're actually paying down the balances, not just moving money around to game the system right before the statement closes, then running the cards back up. Lenders aren't stupid—they can see patterns. But if you're legitimately managing your credit responsibly, timing your payments strategically is perfectly fine and can genuinely help your score. 💡

Why This Matters for Mortgages: A 20-40 point credit score improvement can literally move you into a better rate tier. We're talking about potentially saving 0.25-0.50% on your mortgage rate, which on a $400,000 loan is $40,000-80,000 over the life of the loan. All from timing when you pay your credit card bill. Think about that. 🤯

📰 What Happened This Week in Mortgage Land

Let's do a quick recap of what moved the needle this week:

Jobs Data Stayed Strong
The employment reports this week showed the labor market is still resilient. That's good for the economy overall, but it reduces pressure on the Federal Reserve to cut rates aggressively. Hence this week's slight uptick in mortgage rates. The market is adjusting expectations. 📊

Inventory Continues to Improve Gradually
According to Realtor.com's latest data, active listings are up compared to last year. Not dramatically, but it's trending in the right direction. More inventory means buyers have more negotiating leverage. Good news if you're hunting for properties. 🏠

Holiday Market Dynamics Are Kicking In
Transaction volume typically drops 20-30% in December as people focus on holidays. But here's the thing: serious sellers who keep their properties listed through the holidays are often more motivated to negotiate. If you're a buyer willing to brave showings during the holidays, you might find deals others are too busy to notice. 🎁

🤔 Should You Act Now or Wait for Spring?

Everyone asks this, so let's address it directly. Here's the reality check you need: 🎯

If You're Buying a Primary Residence:
Stop trying to time the market perfectly. If you find a home you love at a price that works for your budget, buy it. Home values historically appreciate over the long term, and Freddie Mac research shows the cost of waiting often exceeds any potential rate savings. Plus, you can always refinance if rates drop significantly—but you can't go back and buy that perfect house someone else bought while you were overthinking. 🏡

If You're an Investor:
The math is different. You're buying cash flow, not emotions. Run your numbers at current rates. If the deal works at 6.27%, buy it. If it doesn't work, pass. December sellers are often more motivated, and year-end tax benefits are real. Talk to investment specialists who can help you model different scenarios. The best investors buy when deals make sense, not when conditions are "perfect." 💼

If You're Building an STR Portfolio:
Q4 and Q1 are actually prime buying seasons for STR properties in many markets. Less competition, motivated sellers, and you're set up for the busy season. Plus, if you're targeting ski properties or winter destinations, buying now means you can capture peak season revenue immediately. Connect with STR loan specialists who understand seasonal markets. ⛷️

🎯 Your Weekend Action Plan:

Ready to make moves before year-end? Here's your playbook for this weekend and beyond:

🌟 The Saturday Bottom Line

Rates went up a tiny bit today. Not a crisis, just a reminder that rates don't only go down. At 6.27%, we're still in workable territory for anyone serious about making moves. 💪

Here's what matters: We're 25 days from 2026. If you've been thinking about buying investment property, maximizing tax deductions, or setting yourself up for a strong 2026, now is literally the time. Not in January when everyone else wakes up with their New Year's resolutions. Now, while sellers are motivated and you can still impact your 2025 taxes. ⚡

The people who build wealth in real estate aren't the ones waiting for perfect conditions. They're the ones who take action when deals make sense, conditions be damned. And right now, in early December with motivated sellers and year-end tax opportunities? Deals can absolutely make sense. 📊

So enjoy your Saturday. Do your holiday shopping. Watch some football. Spend time with family. But also take an hour this weekend to run some numbers and see if there's an opportunity you're sleeping on. Because the best time to plant a tree was 20 years ago. The second best time is today. Even if it's a weekend and rates went up 0.03%. 🌲

Stay sharp, stay informed, and remember: mortgage rates move fast. So do we. 🚀

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Disclaimer: This newsletter is for informational and entertainment purposes only. Mortgage rates, terms, and availability vary by lender and borrower qualifications. The educational content and strategies discussed may not be suitable for everyone. Always consult with licensed mortgage professionals, financial advisors, and tax professionals for advice specific to your situation. Credit score improvement strategies require responsible financial management and time. Past performance and historical trends don't guarantee future results.