BiggerPockets Real Estate Podcast

Don’t Bet on the Fed: What Investors Need to Do Now as Rates Rise Again

Oct 31, 2025
Despite recent Fed rate cuts, mortgage rates are unexpectedly rising, leaving investors in a tough spot. It’s time to shed reliance on the Fed and take action instead. With a shift in dynamics, average buyers are hesitant, creating a unique opportunity for investors. Discover six actionable strategies to secure great deals in this high-rate environment. Embrace tactical approaches like negotiating and focusing on value-add opportunities while leveraging fixed-rate loans to safeguard against future risks.
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INSIGHT

Why Fed Cuts Don't Lower Mortgages

  • The Fed cuts the federal funds rate but mortgage rates often don't fall in tandem because mortgages are long-term loans.
  • Mortgage rates track the 10-year Treasury yield, driven by bond investors' inflation and recession fears.
INSIGHT

Bond Market Tug-Of-War

  • Bond yields and mortgage rates are stuck because investors worry about both inflation and recession simultaneously.
  • That tug-of-war stalls movement in yields, so mortgage rates remain range-bound despite Fed actions.
ADVICE

Act Now, Don't Wait For The Fed

  • Stop waiting for the Fed to make investing easy and instead optimize for today's market conditions.
  • Focus on fundamentals: market selection, deal negotiation, and long-term positioning.
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