One week after the Fed’s latest rate cut, mortgage rates ticked slightly higher again — but for brokers working with real estate investors, this isn’t necessarily bad news.
In fact, it may open up new opportunities to position your clients strategically in today’s shifting market.

“Come on, come on, lovin’ for the money…”
– “Moneytalks,” AC/DC

Why “Good News” Can Push Rates Up

In the current market, strong economic data — like higher job growth or steady consumer spending — can actually pressure mortgage rates higher.

That’s because strong data makes investors believe the Fed will keep rates elevated to prevent inflation from flaring up again. When that happens, bond yields rise, and mortgage rates typically follow.

On the other hand, weaker data or signs of cooling growth often bring yields (and rates) down — as markets expect easier monetary policy ahead.

So, while “good news” sounds great for the broader economy, it can create short-term rate bumps that investor borrowers need to navigate carefully.

For brokers: Use this as a chance to guide clients through timing decisions — especially for DSCR or cash-flow deals where every basis point counts.

What’s Driving the Market

Private Job Gains Stay Strong
The October ADP Employment Report showed higher-than-expected job creation.
That’s good news for economic confidence — but it means the Fed may delay further cuts.

Investor impact: A steady job market supports rent stability and occupancy — a key positive for DSCR borrowers, even if rates remain range-bound.

Service Sector Keeps Expanding
The ISM Services PMI came in at 52.4, signaling solid growth. The “Prices Paid” index also rose, suggesting ongoing inflation pressures.

Investor impact: Inflation isn’t gone yet, but strong services activity means tenants, businesses, and property cash flows remain resilient.

In short: the economy’s holding up — and so are real estate fundamentals.

The Fed Remains Split

Fed Chair Jerome Powell made it clear:

“A further reduction in the policy rate at the December meeting is not a foregone conclusion.”

Some members want to wait before cutting again — others worry that keeping rates too high could cool growth too sharply.

For brokers and investors: Expect volatility ahead. Rate sheets may bounce as markets digest every Fed comment. This environment rewards flexible locking strategies and strong lender relationships.

Rates Snapshot

• 10-Year Treasury: 4.16% (up from 3.97% the prior week)
• 30-Year Fixed Mortgage: 6.22% (up from 6.17%)

While the uptick grabbed headlines, these levels are still among the most favorable of 2025 — and well below last year’s highs.

For investor borrowers: The math still works. Rental yields and appreciation potential remain attractive, and Non-QM programs like DSCR or Bank Statement loans continue to unlock new deals that conventional financing can’t.

What to Watch Next

If the government remains closed, there will be few new economic reports for markets to trade on next week.
Instead, keep an eye on:

• Treasury Auctions: Weak demand could nudge rates up; strong demand may give pricing a lift.
• Fed Speeches: Every public comment will move expectations ahead of December’s meeting.

Broker Strategy for Investor Clients

• Revisit DSCR scenarios: Even small rate shifts can open new qualification windows.
• Use volatility to your advantage: Short-term rate swings can create brief opportunities to lock lower.
• Educate your investors: Explain how strong economic data can move rates — and how that impacts portfolio strategy.

Today’s “good news” economy is keeping the market steady — and for brokers who stay informed, that stability means more confident investors and stronger pipelines.

The Bottom Line

While the headlines may read “Rates Tick Higher Again,” the reality is:

• The economy is solid.
• Rental performance remains strong.
• Creative financing is giving investors flexibility.

That’s not bad news — that’s a market that rewards proactive brokers.

Partner with Acra Lending — your Non-QM and investor lending specialists.
Submit your scenario today and see how we can help you structure deals that perform in any market.