Investor Market Snapshot – 2026-01-22
With the 30-year mortgage rate at approximately 6.09% and the 10-year Treasury yield at 4.26%, the lending environment remains challenging yet stable. For DSCR underwriting, these rates imply higher debt service costs, necessitating robust rental income to maintain coverage ratios. Investors should focus on properties with strong rental demand to ensure consistent cash flow and sufficient reserves to mitigate potential vacancies.
In the fix-and-flip market, the current spread between mortgage rates and Treasury yields suggests tighter margins. This environment demands careful risk management, with an emphasis on accurate budgeting for renovation costs and maintaining contingency reserves for unforeseen expenses. Timely draw management will be crucial to ensure liquidity throughout the project lifecycle.
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Note: For informational purposes only. Not financial advice. Terms subject to change and underwriting approval.
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