• Lending Letter
  • Posts
  • Dec 8: Rates Hold Steady, Opportunities Heat Up 🔥

Dec 8: Rates Hold Steady, Opportunities Heat Up 🔥

Holiday Shopping Can Wait—Here's Your Real Estate Strategy

Author

Alex Veytsman
December 08, 2025

🎯 The Lending Letter 🏡

Monday, December 8th: Rates Hold Steady at 6.27%—Here's Your Year-End Playbook

Happy Monday! ☕ Welcome to Week 2 of December. While your coworkers are talking about their weekend shopping hauls and complaining about traffic at the mall, you're here getting the real intel that actually matters: what's happening with mortgage rates and how to capitalize on year-end opportunities. Smart move. 🧠

Today brings us something we don't always see in December: rate stability. We're holding steady at 6.27%, exactly where we were on Saturday. In a market known for December volatility, this is actually good news. We're still in a zone that's workable for buyers and investors who know what they're doing. And spoiler alert: if you're reading this newsletter, you're about to be one of those people who knows what they're doing. 😎

📊 TODAY'S 30-YEAR FIXED RATE
6.27%
According to Mortgage News Daily | Monday, December 8, 2025 | → Holding steady from Saturday

📊 Monday's Rate Check: Stability is Actually Good News

Here's something refreshing: rates held completely steady over the weekend. Still sitting at 6.27%, exactly where we were on Saturday. In a December market known for volatility and thin trading volumes, stability is actually a win. 🎯

What this tells us: Bond markets are taking a breather after digesting last week's economic data, and mortgage-backed securities are in a holding pattern as we head toward the Fed's December 17-18 meeting. According to Mortgage News Daily's analysis, this kind of stability suggests lenders are comfortable with current pricing—and that's when deals can happen. 📝

🎄 The December Stability Sweet Spot

December can be choppy, but when rates hold steady like this, it's actually a signal that now might be the time to move. Lenders have locked in their pricing, they're motivated to close deals before year-end, and you're not playing guessing games with daily swings. This kind of stability makes it easier to budget, plan, and actually pull the trigger on deals that make sense. ⏰

💰 Lender Promos: Your End-of-Year Advantage

🏠 Looking for Any Type of Property Loan? Primary residence, second home, vacation property—whatever your real estate goals look like, fill out this quick form and we'll connect you with lenders who are hungry to close deals before year-end. December is when lending teams have quotas to hit and are willing to sharpen their pencils. 📝

💼 Investment Property in Your Sights? Smart money knows December is prime time. Motivated sellers + less competition + immediate tax benefits = opportunity. Connect with investment property specialists here who understand how to structure deals that actually cash flow, even at current rates.

🏖️ STR/Airbnb Dreams for 2026? If you want your property earning money by spring break season, you need to be moving NOW. Get connected with STR loan specialists here who know the game inside and out.

🧠 Educational Corner: The 13th Payment Strategy Nobody Talks About

Let's talk about something that can save you thousands of dollars and years off your mortgage, yet almost nobody discusses it: the strategic extra mortgage payment. Not just making an extra payment, but making it right. 💡

Here's the thing most people don't understand: when you make that extra payment matters almost as much as that you make it.

💰 The Math That Changes Everything

Standard Advice: "Make one extra mortgage payment per year and save a ton on interest!" Sure, that works. But here's what they don't tell you...

The Advanced Play: Make that extra payment as early in the year as possible—ideally in January. Here's why this matters:

On a $400,000 loan at 6.27% over 30 years:
• Regular monthly payment: ~$2,462
• Total interest over 30 years: ~$486,000 🤯
• Making one extra payment at year-end: Saves ~$30,000 in interest
• Making that same extra payment in January each year: Saves an additional ~$3,500

That $3,500 difference comes from the time value of money—every month that extra payment is working against your principal balance, it's saving you interest. According to Bankrate's prepayment calculator, the earlier in the year you make it, the more powerful it becomes.

The December Move: If you've got extra cash hitting your account this month (year-end bonus, holiday gift, crypto windfall, whatever), consider making that January payment right now in December. The compounding effect starts immediately, and you'll be ahead of the game in 2026.

Pro Tip: Call your lender and make sure they apply it directly to principal, not to next month's payment. This is crucial. Most lenders have a "principal only" payment option online. Don't skip this step or you've wasted your effort. 🎯

📊 What's Actually Happening in the Market Right Now

Let's cut through the noise with actual data from this past week:

1. Inventory is Your Friend Right Now
According to Realtor.com's latest data, active listings in most markets are up 15-20% compared to this time last year. More options = more negotiating power. This is especially true in December when many sellers get nervous about their homes sitting through the holidays. 🎁

2. Price Growth is Stabilizing
The crazy 15-20% year-over-year gains? Those are history. Zillow's December report shows we're seeing more sustainable 3-4% annual growth in most markets. This is actually healthy—it means the market is finding balance instead of being driven purely by FOMO. 📈

3. The December Sweet Spot
Here's something most people miss: December is when serious sellers stay on the market. The casual "let's see what we can get" sellers pulled their listings in October. Anyone still actively selling in December? They're motivated. According to NAR data, homes that close in December often sell for 2-3% less than spring comps because sellers want the deal done. 💼

🏘️ For the STR Investors: December is Actually Prime Time

Everyone thinks summer is STR season for buying, but December? December is when the smart money moves. Here's why: 🎿

Winter Markets Are Printing Money
If you're looking at ski towns, holiday destinations, or warm weather retreats, bookings are already happening for 2026. Buy now, and you're collecting revenue by January while everyone else is still thinking about "maybe looking in spring." Time in the market beats timing the market—especially with rental properties. ⏰

Tax Benefits Start Immediately
Close before December 31st, and you can start depreciating the property on your 2025 taxes. That's potentially tens of thousands in deductions for a property you owned for maybe two weeks in 2025. The IRS rules are clear—the property just needs to be "placed in service" before year-end. 💰

For serious STR investors, here's your power toolkit:

🎓 Personal Finance Hack: The Year-End Roth Conversion Window

💡 Convert Traditional IRA to Roth Before December 31st

Here's a year-end move that could save you serious money if you're strategic about it: partial Roth IRA conversions. And December is your last chance to do it for 2025. ⏰

The Basic Concept: You convert money from a traditional IRA (tax-deferred) to a Roth IRA (tax-free growth forever). You pay taxes now, but never again on that money or its gains.

Why December Matters: You know your 2025 income now. You can see exactly where you land in tax brackets. According to 2025 IRS brackets, if you're single and making $100,000, you're in the 24% bracket. But if you had a slower year and you're at $85,000? You're only in the 22% bracket.

The Strategic Play:

  • Lower Income Year? This is your chance to convert more at a lower tax rate. Convert enough to "fill up" your current bracket without bumping into the next one.
  • Market Down on Your IRA? Perfect time to convert. You'll owe taxes on less value, and all future gains happen tax-free in the Roth.
  • Planning Big Purchase Next Year? Converting this year means those Roth dollars won't count as income when you're applying for that mortgage in 2026. Your debt-to-income ratio will thank you.

The Warning: Converted money has to stay in the Roth for 5 years before you can withdraw it penalty-free. The rules are specific, so don't convert money you'll need soon.

Real-World Example: You're single, made $95,000 this year, and have $50,000 in a traditional IRA. You could convert $11,000 (staying in the 22% bracket) and pay $2,420 in taxes. That $11,000 grows tax-free forever. Over 20 years at 8% average returns, that's $51,000 you'll never pay taxes on. That's not nothing. 🎯

Action Item: You have until December 31st to execute this for 2025. Talk to your tax advisor this week—yes, this week—because conversion paperwork can take a few days to process.

🎯 Should You Lock Your Rate This Week?

The million-dollar question (or, more accurately, the question that affects your million-dollar mortgage).

Here's what we're watching: The Fed's next meeting is December 17-18. According to the Fed's calendar, they'll likely hold rates steady but give guidance on 2026. Markets will react, and mortgage rates will move. 📊

If you're closing soon (next 30-45 days): Lock it. Rates around 6.27% aren't amazing, but they're workable. Gambling on a big drop in the next few weeks is playing with fire. According to Freddie Mac's historical data, December rate swings can go either direction, and there's no crystal ball.

If you're closing later (60+ days): You might float a bit longer, but have a locking strategy. Talk to your lender about rate lock options and don't wait until the last second. Nobody ever regretted locking a decent rate and moving on with their life. 🎯

🚀 Your Monday Action Plan:

Ready to make moves before the year ends? Here's your playbook:

🌟 The Bottom Line

Look, rates at 6.27% aren't sexy. Nobody's popping champagne bottles. But they're reality, and reality is where deals get done. 🥂

While everyone else is distracted by holiday shopping, office parties, and trying to figure out what to get their mother-in-law for Christmas, smart investors and buyers are making moves. Motivated sellers. Less competition. Immediate tax benefits. Year-end lending quotas. All of this creates opportunity for people who are paying attention. 👀

According to CoreLogic's housing data, homes purchased in December often appreciate just as well as spring purchases, but buyers face 40% less competition. Think about that for a second. Same outcome, less stress, better negotiating position. 🎯

The strategy isn't complicated: Stop waiting for perfect conditions and start executing in good conditions. December 2025 offers good conditions. Not perfect. Good. And good is enough to build wealth. 💪

Stay sharp, stay informed, and remember: the best time to start was yesterday. The second best time is today. Even if it's a Monday. Especially if it's a Monday. 📅

The Lending Letter
📬 Delivered daily to your inbox (except Sundays)
🚀 Because mortgage rates move fast, and so do we

See you tomorrow (Tuesday) for another edition of market intel that actually matters!

Disclaimer: This newsletter is for informational and entertainment purposes only. Rates and terms vary by lender and borrower qualifications. Mortgage rate data sourced from Mortgage News Daily. Always consult with licensed mortgage and financial professionals for your specific situation. Tax strategies discussed should be reviewed with a qualified tax advisor. The 13th payment strategy and Roth conversion information is general guidance and may not apply to all situations.