Understanding interest rate trends is crucial for real estate investors in 2026. Whether you're financing fix and flip projects or acquiring long-term rentals, the rate environment directly impacts your profitability. Here's our comprehensive analysis and predictions for the year ahead.
As of early 2026, interest rates have stabilized after the volatility of previous years. The Federal Reserve has signaled a more cautious approach to rate changes, creating a predictable environment for borrowers.
Prime Rate: 8.50% | Federal Funds Rate: 5.50% | 10-Year Treasury: 4.25%
Rates expected to remain flat with minimal changes. Good time to lock in rates if you find favorable terms.
Possible 25-50 basis point cut depending on economic indicators. Monitor inflation data closely.
Expected continued stability with potential for further rate adjustments if inflation continues to moderate.
Market likely to remain stable heading into 2027. Ideal time for long-term financing locks.
| Loan Type | Typical Rate Range | Points |
|---|---|---|
| Hard Money (Fix & Flip) | 8% - 12% | 2 - 4 |
| Bridge Loans | 8% - 12% | 2 - 3 |
| DSCR Rental Loans | 6.5% - 7.5% | 0 - 2 |
| Conventional Rental | 6.0% - 7.0% | 0 - 1 |
| Commercial Loans | 6.5% - 8.5% | 1 - 3 |
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