Why Investors Should Know About Conventional Rates

Welcome to Your September 2024 Market Update

Today we are going to discuss why investors should know about conventional rates in this real estate market. Here at The Cash Flow Company we want to keep you as up to date as possible on these changes so that you can make the most of it! Let’s take a closer look.

Conventional Rates: A Better Time for Buyers

Why should you care about conventional rates? Well, they’re crucial because they determine what your end buyers can afford. Right now, we’re seeing rates in the high fives and are around 5.625% to 5.75% for those with excellent credit and strong LTVs on owner-occupied properties.

Looking Forward

If the Fed continues to drop rates, we could see conventional rates fall into the low fives by the end of the year or early next year. While I don’t expect rates to drop more than a point or point and a half in the next 12 months, even these modest decreases will make a big difference. More buyers in the market mean more opportunities to sell your properties and move on to the next deal.

Now is the time for change!

So, what’s the takeaway? Rates are trending down across the board for DSCR loans, fix and flip projects, and even conventional loans. That’s great news for not only cash flow and affordability, but for getting your properties sold as well. The past year has been tough with high rates, but the tide is turning. More buyers are entering the market, properties are starting to cash flow again, and there’s a lot more activity overall.

Stay Updated with Our Mortgage Report

Want to keep up with where rates are headed? We’ve got a mortgage report that tracks the trends and tells you who’s offering the best rates for fix-and-flip, DSCR, and other loan products. Watch our most recent video to find out more about Why Investors Should Know About Conventional Rates.