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  • Jan 27: Rates tick down while everyone's still hibernating ❄️

Jan 27: Rates tick down while everyone's still hibernating ❄️

Stop Waiting for Perfect—Here's What's Happening Right Now

Author

Alex Veytsman
January 27, 2026

📬 The Lending Letter 🏡

Late January Vibes: Rates Tick Down While Everyone's Still Hibernating

Happy Tuesday! ☕ We're officially in the last week of January, which means most people have already abandoned their New Year's resolutions (no judgment—we all said we'd go to the gym more). But here's a resolution you can actually keep: staying informed about what mortgage rates are doing RIGHT NOW.

📊 TODAY'S 30-YEAR FIXED RATE
6.15%
Down 0.02% from yesterday 📉 | According to Mortgage News Daily | January 27, 2026

🎯 The Tuesday Truth: Rates Are Moving (Slightly) in Your Favor

Let's talk about today specifically: we're sitting at 6.15%, which is down a smidge from yesterday's 6.17%. Is this earth-shattering news? Nope. But it's another data point showing that rates are stabilizing in the low-to-mid 6% range, and that's actually... not bad? 🤷

Here's what's happening in the market right now: We're in peak hibernation season for real estate. Most buyers are still thinking "maybe I'll start looking in spring," while sellers are waiting to list until the weather gets nicer. Meanwhile, the Fed is watching economic data like it's the finale of their favorite show, trying to figure out their next move. 📺

🧊 The Late January Opportunity

Remember when everyone was hyped about January being a "fresh start"? Well, now we're on Day 27, reality has set in, and most casual home shoppers have gone back to scrolling Instagram instead of Zillow. This is actually prime time for serious buyers and investors. Less competition, motivated sellers who need to move, and rates that are workable. It's like finding the gym empty at 6am because everyone else gave up on their resolution. 💪

💰 Lender Promos: Your Late January Edge

🏠 Looking for a Loan on Any Property? Whether it's your first home or your tenth rental, don't waste time shopping around aimlessly. Fill out this quick form and we'll connect you with lenders who are actually competing for your business right now.

🏢 Got Your Eye on an Investment Property? January is when the smart money starts positioning for the year ahead. Connect with investment property specialists here who understand how to structure deals that actually pencil out in today's market.

🏖️ Planning Your STR Strategy? While everyone else is still thinking about it, you could be closing deals. Get connected with STR loan specialists here who know exactly how to make the numbers work on short-term rentals.

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

Let's talk about something that confuses almost everyone and costs you actual money every month: Private Mortgage Insurance (PMI). And more importantly, how to get rid of it. 🚫

If you put down less than 20% on a conventional loan, you're probably paying PMI. On a $400,000 home with 10% down, that's typically around $150-200 per month. That's $1,800-2,400 a year going toward... nothing that benefits you. It's just insurance that protects the lender in case you default. Fun times. 😑

💡 How to Actually Remove PMI

Method 1: The Automatic Termination (The Slow Way)
By law, your lender must automatically cancel PMI when your loan balance reaches 78% of the original purchase price. But here's the catch: this is based on your scheduled payments, not your actual home value. So even if your home appreciates like crazy, you're stuck waiting unless you do something about it. ⏰

Method 2: Request Cancellation (The Smart Way)
Once you hit 80% loan-to-value ratio, you can request PMI removal. This can happen through paying down your mortgage OR through home appreciation. Here's where it gets interesting: If you bought your home in 2023-2024 when prices were lower, and your home has appreciated, you might already qualify. 📈

The Process:

  • ✅ Get your home professionally appraised (costs $400-600, but worth it if you're paying $200/month in PMI)
  • ✅ Request cancellation in writing from your servicer
  • ✅ Make sure your payment history is solid (no late payments in the last year)
  • ✅ Watch that $200+ monthly expense disappear forever

Method 3: Refinance (The Nuclear Option)
If your home has appreciated significantly and you now have over 20% equity, refinancing might make sense—especially if rates have dropped since you bought. You eliminate PMI AND potentially lower your rate. Double win. 🎯

Real Talk: According to Bankrate's analysis, the average homeowner pays PMI for about 5 years, but many could remove it much sooner if they were proactive about it. Don't be average. If you think you might qualify, talk to a lender about running the numbers. That $200/month adds up to $12,000 over five years—money that could be in your pocket instead. 💰

🏘️ For Real Estate Investors: The Late January Window

Okay investors, listen up because this is your time. While everyone else is complaining about the weather and waiting for "spring market," here's what you should be doing:

1. The Motivated Seller Sweet Spot
Anyone who has their property listed in late January isn't playing games. They NEED to sell. Maybe it's a job relocation, maybe it's financial pressure, maybe they inherited it and just want it gone. Whatever the reason, these are the sellers who will actually negotiate. 🤝

2. 2025 Tax Planning (Yes, It's Not Too Late)
Here's something most people don't realize: You have until you file your 2025 taxes (April 15, 2026) to make certain tax-advantaged moves. If you close on an investment property now and immediately start making improvements, those expenses could potentially be deducted on your 2025 return (talk to your CPA about specifics). ⏱️

3. The STR Setup Season
Want to know a secret? The best time to buy an STR property is NOT right before high season—it's right now. Buy in January/February, spend March/April getting it dialed in (furnishing, marketing, optimizing), and you're printing money by May. Talk to our STR specialists about properties that could be cash-flowing before summer even starts. 🏖️

Level Up Your Game:

🎓 Personal Finance Hack: The "Backdoor Roth" Everyone Should Know About

💰 How High Earners Can Still Use a Roth IRA

If you make "too much money" to contribute directly to a Roth IRA (over $161,000 single or $240,000 married filing jointly in 2026), you might think you're locked out of one of the best retirement vehicles available. Plot twist: you're not. Enter the Backdoor Roth. 🚪

What It Is: A perfectly legal strategy where you contribute to a traditional IRA (which has no income limits) and then immediately convert it to a Roth IRA. According to Investopedia's breakdown, this lets you get money into a Roth even when you're supposedly "above the limit." 🎯

The Process (It's Simpler Than It Sounds):

  • 1️⃣ Open a traditional IRA if you don't have one
  • 2️⃣ Make a non-deductible contribution (up to $7,000 in 2026, or $8,000 if you're 50+)
  • 3️⃣ Immediately convert it to a Roth IRA
  • 4️⃣ File Form 8606 with your taxes to report the conversion
  • 5️⃣ Enjoy tax-free growth forever 🎉

The Catch (There's Always a Catch):
The "Pro-Rata Rule" can complicate things if you already have money in traditional IRAs. Basically, the IRS treats all your traditional IRA money as one big pool, so if you have $100,000 in a traditional IRA and contribute $7,000 for a backdoor Roth, the conversion isn't as clean. Talk to your tax advisor before doing this. 🧮

Why This Matters NOW:
You can make 2025 IRA contributions until April 15, 2026. So if you didn't max out your Roth last year because of income limits, you've still got time to do a backdoor Roth for 2025 AND start doing it for 2026. That's $14,000 (or $16,000 if you're 50+) into tax-free growth territory. 📈

Pro Tip: According to NerdWallet's research, the Backdoor Roth works even better when combined with a Mega Backdoor Roth through your 401(k) if your employer plan allows it. Combined, you could potentially get over $50,000 into Roth accounts in a single year. Yeah, it's that powerful. 💪

Action Item: If you make over the Roth income limits, call your brokerage (Vanguard, Fidelity, Schwab, whoever) and tell them you want to do a Backdoor Roth. They've done this a thousand times and can walk you through it in 10 minutes. Don't leave free money (well, future tax-free money) on the table. 🎁

📊 Market Intel: What January Data Is Telling Us

Let's cut through the noise with real numbers:

Transaction Volume is Low... And That's Normal
January and February are historically the slowest months for real estate. According to NAR data, this is expected. What matters more is the trajectory: are things getting better or worse compared to last January? Inventory is slightly higher year-over-year, which is actually good news for buyers. 📊

The Rate Stabilization Story
We've been hovering in the 6-6.5% range for weeks now, with tiny fluctuations day to day. This stability is actually valuable—it lets buyers and sellers plan with more confidence. According to Freddie Mac's mortgage survey, predictability matters almost as much as the actual rate level. 🎯

The Spring Market Preview
Most sellers wait until March/April to list because they think that's when buyers are looking. And guess what? Most buyers wait until March/April to start shopping because they think that's when inventory shows up. It's a self-fulfilling prophecy. The contrarians who move in January/February often find better deals and less competition. Just saying. 🤷

🔥 Should You Buy Now or Wait?

The question everyone's asking. Here's the honest answer:

If you're waiting for 3% rates: Stop. They're not coming back anytime soon (possibly ever). The Fed's long-term projections don't support that fantasy. Even if rates drop to 5.5%, home prices will likely rise to offset the difference. 📉

If you're waiting for a market crash: You might be waiting a long time. According to current market data, we still have a housing shortage, demand is steady, and prices are moderating but not collapsing. This isn't 2008. 🏚️

If you're ready to buy and found the right property: The math is simple. Every month you wait is another month of rent (or another month of missing out on appreciation and tax benefits if it's an investment). Run the numbers, factor in your timeline, and make a decision based on your situation—not what pundits on Twitter think is going to happen. 🧮

The Real Play: Buy properties that make sense at TODAY's rates. If rates drop later, refinance. If they don't, you're still building equity and getting tax benefits (for investments) or building your net worth (for primary). Waiting for perfect conditions means never taking action. ⏰

🎯 Your Late January Action Plan:

Ready to stop watching from the sidelines? Here's how to get in the game:

🌟 The Bottom Line

Late January is when the wheat separates from the chaff. Casual shoppers are gone. Serious buyers and investors are making moves. Rates at 6.15% are workable, inventory is slightly better than last year, and motivated sellers are out there waiting for offers. 🎯

Remember: the tax advantages of real estate don't change with rates. Depreciation, mortgage interest deductions, and long-term wealth building still work at 6.15%. And if you're an investor, finding the right deals matters way more than shaving 0.25% off your rate. 💰

Plus, here's something to consider: in five years, are you going to remember whether you bought at 6.15% or 6.25%? Nope. But you WILL remember whether you took action or kept waiting for "perfect conditions" that never materialized. 🤷

Stay sharp, stay informed, and remember: fortune favors the prepared (and the people who actually submit offers instead of just scrolling Zillow). 📱

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See you tomorrow (Wednesday, January 28th) for another dose of market real talk!

Disclaimer: This newsletter is for informational and entertainment purposes only. Rates and terms vary by lender and borrower qualifications. Always consult with a licensed mortgage professional, financial advisor, and tax professional for your specific situation. The strategies discussed require careful consideration of your personal financial situation and risk tolerance.