The current 30-year mortgage rate of 6.09% and the 10-year Treasury yield at 4.26% indicate a relatively stable interest rate environment. For DSCR underwriting, this stability supports predictable debt coverage ratios, allowing investors to better assess rental income against debt obligations. Steady rates can also facilitate more accurate projections for reserves and future rent adjustments, ensuring sufficient coverage.
In the fix-and-flip market, the spread between mortgage rates and Treasury yields remains crucial. A consistent spread helps maintain profitability margins, as borrowing costs are more predictable. This environment supports better planning for draw schedules and contingency reserves, reducing the risk of cost overruns during renovations.
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Note: For informational purposes only. Not financial advice. Terms subject to change and underwriting approval.