The Market Is Moving – Are You Ready?
The market is waking up. Pending home sales rose by 0.8% in May, marking the first monthly gain since February. In late June, 30-year mortgage rates dropped below 6.8%, providing a unique opportunity for real estate investors focused on income properties. For these investors, this is the signal to act – especially for those using DSCR loans or other rental-focused financing.
📉 Lower rates = better margins
📈 Rising activity = increased competition
Now is the time to pair market momentum with strategic financing.
Why This Matters to Investors Using DSCR Lending
- Pending sales = early signs of future closings – ideal for proactive investors
- Rate drops strengthen debt service coverage ratio (DSCR) qualifications
- Rental demand remains high, and rental properties continue to cash flow
If you’re a real estate investor interested in a DSCR loan, lower rates can help improve your DSCR mortgage position, especially if your property’s net income edges close to that critical 1.0–1.25 ratio. The better your debt service, the better your terms from any savvy DSCR lender.
Actionable Investor Takeaways
Now is the Time to Explore DSCR Financing
While rates are sub-6.8%, this is your chance to refinance or acquire with a stronger debt service coverage ratio loan for your investment property. If you wait, rates may rise, which could negatively impact your cash flow and eligibility for the loan you need to fund our next investment property.
Find DSCR lenders on LenderSearch.com
Be Ready for More Bidding
Rising pending sales signal increased buyer interest. With inventory still tight, having your DSCR loan preapproval ready gives you the speed edge to compete against hungry buyers. In this market, it’s critical to act quickly due to high demand for homes and buyers that are poised to purchase now that rates have dipped slightly.
Know Where to Look
Sales jumped most in the South and Midwest – ideal areas for rental investors as a result of affordable home prices and rising rents. These areas are perfect for real estate investors who aspire to build long-term cash flow using DSCR lending.
Why Timing Is Everything
With the debt service coverage ratio improving under current rates and pending sales trending upward, the smartest move is to act now. Whether you’re adding one property or scaling to five, the environment is shifting in your favor – but time will only tell for how long this will last.
Want more? Read the articles on Scotsman Guide
30-Year Mortgage Rates Dip Below 6.8%
Pending Home Sales Rise in May
