Real estate investors throw in the towel on hopes for lower 2025 mortgage rates
Briefly

A recent survey found that 79% of single-family investors are likely to buy a property within the next year, a rise from previous surveys. Conversely, 32% of these investors are likely to sell a property, indicating decreased intent compared to prior quarters. Additionally, 57% of participants expect mortgage rates to stay above 6.5% over the next year. Rising insurance premiums and property taxes have negatively impacted cash flow for many landlords, leading to 83% planning to increase rents, although significant hikes are less common.
79% of single-family investors say they are "somewhat likely" or "very likely" to buy at least one property in the next 12 months. That's up from 76% in Q4 2024 and 61% in Q2 2024.
57% of single-family investors believe mortgage rates will remain above 6.5% over the next 12 months-up sharply from 29% in Q4 2024 who expected the average 30-year fixed rate to stay above that level.
59% of landlords say higher insurance premiums have moderately (42%) or significantly (17%) reduced their cash flow over the past year.
83% of landlords plan to raise rents in the next 12 months-but only 10% of landlords expect rent hikes of more than 7%.
Read at Fast Company
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