Real Estate Rookie Mortgage Rate Drops Are Coming: How to Prepare Today
Jul 16, 2025
Mortgage expert Jeff Welgan shares his valuable insights on the shifting lending landscape for real estate investors. He discusses predicted mortgage rate drops and how they might influence buyer demand and home prices. Jeff emphasizes the importance of communicating goals to lenders and offers advice on choosing the right financing options, including non-conventional loans. He warns against common pitfalls, such as buying mortgage points, and encourages new investors to ask questions and thoroughly research their options.
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Mortgage Rate Outlook for 2025
- Mortgage rates likely won't drop suddenly but will gradually ease down by late 2025.
- Investment property rates will hover in the mid sixes, better than current lows in the mid sevens.
Fed Rate vs. Mortgage Rates
- Lowering the Fed funds rate affects mortgage rates indirectly, not immediately.
- Mortgage rates move based on market expectations and economic data.
Buy Deals That Work Now
- Prepare loan calculations using today's elevated rates, not hoped-for future lower rates.
- Avoid emotional decisions; plan for both best and worst scenarios.