Investor Market Snapshot – 2026-01-24
The current 30-year mortgage rate at approximately 6.09% and the 10-year Treasury yield at 4.26% indicate a relatively stable interest rate environment. For DSCR underwriting, these rates suggest a moderate borrowing cost, impacting debt coverage ratios. Investors should ensure rental income sufficiently covers debt obligations, factoring in potential rate adjustments. Maintaining adequate reserves is crucial to mitigate risks associated with fluctuating rental markets and interest rates.
In the fix-and-flip sector, the spread between acquisition costs and sale prices remains critical. With interest rates at these levels, investors must carefully manage renovation budgets and timelines to preserve margins. Efficient draw management and contingency planning are essential to handle unexpected expenses and market shifts, ensuring projects remain profitable despite potential rate hikes.
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Note: For informational purposes only. Not financial advice. Terms subject to change and underwriting approval.