In an economy like this, you have to be strategic when it comes to real estate investing. Depending on your market, there is still profit to be made but it takes some smart planning and the willingness to pivot.
We’d like to say that we know where the housing market and interest rates are headed in 2025 but we are interpreting the latest economic indicators just like everyone else. Since January’s CPI report came in higher than expected, future rate cuts by the Fed look iffy.
That’s not great news since high interest rates are effectively suppressing housing market demand. In fact, the folks at JP Morgan report that the 2025 housing market is pretty stagnant–a situation that won’t change until interest rates moderate. Their prediction? “The situation is not going to change until we get mortgage rates back down toward 5%, or even lower,” John Sim, head of Securitized Products Research at J.P. Morgan. “And we aren’t forecasting mortgage rates to breach 6% in 2025 — they should ease only slightly to 6.7% by the year-end.”
So what is a real estate investor to do?
We recommend an exit strategy that doesn’t rely on a quick sale. Lots of our clients are turning to DSCR loans to take advantage of strong rental demand.
✅ Purchase, Rate Refinance, Cash-Out Refinance
✅ Loans From $100K to $3.5M
✅ Residential Single(1-4 Units) And Multi-Family (5-8 Units)
✅ 30-year, 20-year, and 15-year Fixed OR 5, 7, and 10-year ARM
✅ Credit 640+
We also see considerable interest in ground-up construction as a way to create equity and unlock inventory at the same time.
✅ Up to 85% LTC
✅ Up to 70% LTV
✅ Standard 12 Month Term
✅ Up To 18 Month Term
✅ No Pre-Payment Penalty
✅ Credit 680+
Want to discuss your options with one of our loan officers? Reach out directly or call 888.444.3160 to be put in touch. We are also happy to provide a free, no-obligation quote for you when you click the link below: