Mortgage rates cool in 2025, but 2026 relief likely limited
Summary
Mortgage rates are expected to cool in 2026, which could impact the second-home market and potentially benefit investors using debt-service-coverage ratio (DSCR) loans. Hosts should be aware of these trends as they may influence the demand for vacation rentals and investment strategies.
Key Insights
- •Nonqualified mortgages, including debt-service-coverage ratio (DSCR) loans, gained traction in 2025, which cater to investors and second-home buyers.
- •Mortgage rates are currently around 6.2% and are expected to remain relatively stable in the first half of 2026.
Action Items
- ✓Consider the impact of interest rates and the second-home market on your rental demand and pricing strategies. Review DSCR loan options if investing.Effort: lowImpact: medium
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