Thrilled to announce we’ve just funded a VA loan for a $1.7M 4-unit property in Ventura, CA! Our loan officer, Chris James, secured $1.518M with a VA loan to purchase his client’s dream 4-plex! Proof of the power of VA financing for multi-family investments. At Pacific Oaks Mortgage, we specialize in VA loans, offering tailored solutions with 60+ 5-star Google reviews and 20% faster closings.

Ready to fund your next property? Contact us for expert VA loan support!

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As of March 17, 2025, the mortgage landscape is shifting with the Federal Reserve’s recent rate cuts, offering a golden window for homebuyers and refinancers. At Pacific Oaks Mortgage, we’ve analyzed the latest data and uncovered opportunities you can’t afford to miss. Here’s how to seize the moment:

1. Lower Rates, Bigger Savings
The Fed’s 0.25% rate cut in February 2025 (projected based on early 2025 trends) has dropped average 30-year fixed mortgage rates to around 6.2%—down from 6.5% in late 2024. For a $400,000 loan, that’s a monthly savings of $100, totaling $36,000 over 30 years. Act fast—rates may rise as inflation stabilizes.

2. Refinance Smartly
Homeowners with rates above 6.5% can refinance now. Our clients who refinanced in the last month saved an average of $150/month. Use our free refinance calculator to see your potential savings.

3. First-Time Buyer Boost
With down payment assistance programs still active in 2025, first-timers can enter the market with as little as 3% down. Pair this with our competitive VA and FHA rates to maximize your budget.

Why Wait?
Delaying could mean higher rates or fewer homes. Contact us today for a personalized quote—our team closes loans 20% faster than the industry average!

As we leave behind the challenges and opportunities of 2024, real estate investors are setting their sights on new opportunities for growth and expansion in 2025. Whether you’re flipping properties, developing new construction, or building a long-term rental portfolio, one thing is certain—adaptability, speed, and diversification are critical for success.

In this guide, we’ll break down what 2024 taught us and how investors can capitalize on fix-and-flip projects, new construction, and rental property investments in the coming year.

Top Lessons from 2024 That Will Shape 2025

Adaptability is Key to Success

The real estate market experienced rapid shifts in 2024, from fluctuating interest rates to changing buyer preferences. Investors who adjusted their strategies—targeting emerging markets, pivoting to rental properties, and identifying high-growth suburban areas—stayed ahead of the curve.

In 2025, investors should focus on:
✅ Emerging growth markets with increasing demand
✅ Suburban and secondary cities where affordability is still a key factor
✅ Properties catering to remote work trends, such as homes with dedicated office spaces

Fast Financing is a Competitive Advantage

One of the biggest takeaways from 2024 was the importance of quick access to capital. In competitive markets, the ability to secure funding fast often made the difference between landing a deal or losing out to another buyer.

🏡 Investors who partnered with lenders offering streamlined approvals and flexible terms found greater success.

In 2025, it’s critical to work with a lender that prioritizes speed and efficiency, ensuring you’re always ready to act on a promising investment opportunity.

Diversification Strengthens Your Portfolio

Smart investors in 2024 spread their risk across multiple investment types and locations, leading to more consistent returns despite market uncertainties.

🛠 Key diversification strategies for 2025:

Investing in multiple property types (fix-and-flip, rental, new construction)

Expanding into different geographic regions to mitigate local market fluctuations

Considering alternative housing solutions like ADUs (Accessory Dwelling Units) or co-living spaces

Tech-Driven Investing is the Future

2024 saw technology revolutionizing real estate investment—from AI-driven property analysis to modular construction innovations. Investors who leveraged data analytics, digital property scouting, and automation tools gained an edge in identifying high-value deals.

🔍 How to stay ahead in 2025:
✅ Use AI-powered tools for property valuation and risk assessment
✅ Monitor real-time market trends to spot investment opportunities early
✅ Leverage construction tech to streamline development projects

Big Investment Opportunities for 2025

1️⃣ Fix-and-Flip Investments

💰 High ROI potential | 🏡 Strong demand for move-in-ready homes

Fix-and-flip investing remains a top strategy for short-term gains, especially in areas with aging housing stock. Investors can buy undervalued properties, renovate, and sell for profit—but success depends on market research, cost management, and fast financing.

🚀 Winning Fix-and-Flip Strategies for 2025:

Target suburban neighborhoods attracting homebuyers priced out of major cities

Work with reliable contractors to keep projects on schedule

Secure quick, flexible fix-and-flip loans for fast property acquisition

2️⃣ New Construction & ADUs (Accessory Dwelling Units)

🏗️ High demand for housing | 📈 Great long-term investment

With housing shortages still prevalent, new construction is a lucrative investment avenue. Alternative housing solutions like ADUs (tiny homes, garage conversions, and in-law suites) are gaining traction, providing affordable housing options in high-cost areas.

✅ Why ADUs Are a Game-Changer:

Cities are relaxing zoning laws to encourage more housing

ADUs increase property value and provide passive rental income

Investors can build-to-sell or build-to-rent, depending on their strategy

3️⃣ Fix-to-Rent & Build-to-Rent Strategies

🏠 Generating steady passive income | 🔑 High demand for rental units

Fix-to-rent and build-to-rent are two hot investment strategies as rental demand surges across the U.S. Investors can renovate homes for long-term rental income or develop new rental properties tailored to market demand.

📊 Key Benefits of These Strategies:
✔️ Steady monthly cash flow from rental income
✔️ Builds long-term wealth with property appreciation
✔️ Offers flexibility (can later be sold if needed)

Why Partnering with a Local Lending Expert Matters

Real estate success isn’t just about finding the right property—it’s about having the right financing partner to help you close deals quickly and efficiently.

At Pacific Oaks Mortgage, we specialize in funding fix-and-flip projects, new construction, and rental investments, offering:
✔️ Fast loan approvals for investors who need to move quickly
✔️ Flexible financing solutions tailored to your unique investment goals
✔️ Local market expertise to guide you through Westlake Village and beyond

2025 is YOUR Year—Let’s Build Your Portfolio Together!

🚀 Whether you’re flipping houses, building new developments, or growing your rental empire, Pacific Oaks Mortgage is here to help you secure the right financing and maximize your investment returns.

Rates marched higher to the highest levels in March today, but most lenders are only microscopically worse off than Friday afternoon. In the slightly bigger picture rates have moved up roughly a quarter of a percent in just over a week and that’s a relatively quick move.

The last time rates rose a quarter of a point in short order was at the beginning of February. The entire jump happened in a single day following the release of much stronger jobs data. It was also followed by additional momentum thanks to inflation data in the following week.

The current move is also data driven with two inflation reports coming in hotter than expected last week. The average lender is now very close to their highest levels in several months, which seems fitting considering the arrival of the next Fed announcement on Wednesday.

We already know the Fed will not be cutting rates. We don’t know how they’ll adjust their rate outlook for the rest of the year. The last update (on December 13th) was very friendly. This update should be less so. If the Fed’s shift in “friendliness” matches market expectations, we may not get too much volatility, but considering the circumstances, volatility is a distinct risk.

https://www.mortgagenewsdaily.com/markets/mortgage-rates-03182024
By: Matthew Graham
Mon, Mar 18 2024, 3:50 PM

Another satisfied customer and glowing review @ Pacific Oaks with the help and guidance from Louann Davis our certified Reverse Mortgage Specialist!

“Our mother had a reverse mortgage for many, many years. It was a lifesaver for her since our father had passed away 20 years earlier. It was only because of this reverse mortgage that our mom was able to live happily in her own home for 50 years until she passed away at the age of 89.

When our mother passed away, we wanted her house to go to my sister, who had lived with and taken such good care of her for seven years. The trick was figuring out how to do this.

The problem was that we couldn’t afford to purchase the house and had no idea how to make the situation work. EVERYONE told us to sell and use the money to buy a condo. This was our childhood home, and we had an emotional attachment to it. We couldn’t accept giving it up to live in a condo.

Thanks to a referral from a friend who sang Louann Davis’ praises, my three sisters and I met with her. We immediately felt like we were scooped up into her care and that everything would work out…no matter what. During our first meeting, she listened patiently to our situation, position, wants, and needs, then went to work for us. She comforted us. She kept us educated and informed every step of the way. She advocated for us. By our second in-person meeting, my sisters and I felt like we were being cared for by a friend.

She put all the pieces of a very complicated and challenging puzzle together so that my sister could get a reverse mortgage on the house, and now my sister and I can live in the home that we love for the rest of our lives.

I can’t imagine anyone else who would have gone to bat for us like Louann did. She went above and beyond, and I really do feel like we have a lifelong friend in her.

I believe getting in touch with Louann Davis would benefit anyone who has even considered a reverse mortgage. You can be comforted by the fact that she will only advise what is in your best interest. I’m thankful every day that I followed through and called her.”

Laura W

Building permits rise year-over-year, signaling growth, while a significant decline in housing starts and completions points to ongoing challenges and market volatility.

The pace of housing construction showed mixed signals in January, with building permits showing growth year-over-year, while housing starts experienced a significant decline from December, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.

Building permits, a leading indicator of future construction activity, were issued at a seasonally adjusted annual rate of 1,470,000 units in January, marking a slight decrease of 1.5% from December’s revised rate of 1,493,000. However, this figure represents an 8.6% increase compared to January 2023, signaling continued interest in new housing development. Specifically, single-family home authorizations rose by 1.6% to a rate of 1,015,000 from December’s revised figure of 999,000, while permits for units in buildings with five or more units were at a rate of 405,000.

Conversely, housing starts, which measure the commencement of construction on new housing units, totaled a seasonally adjusted annual rate of 1,331,000 in January. This reflects a sharp 14.8% drop from the revised December estimate of 1,562,000 and a slight 0.7% decrease from the January 2023 rate. The decline was more pronounced in the single-family sector, which saw starts fall by 4.7% to a rate of 1,004,000 compared to December. The rate for units in buildings with five or more units came in at 314,000.

Housing completions in January also saw a downturn, with a seasonally adjusted annual rate of 1,416,000 units, 8.1% below December’s revised figure. Despite this month-to-month decrease, completions were up 2.8% from January 2023, indicating that builders are working through backlogs. Single-family home completions plummeted by 16.3% to 857,000 from December, while completions for units in buildings with five or more units were reported at 538,000.

“There is a risk in the short-term that housing market progress stalls as long-term interest rates have risen again in recent weeks, but this should be short-lived, as the expectation for Fed rate cuts remains, which should bring long-term rates down again,” First American Deputy Chief Economist Odeta Kushi said. “The outlook for the single-family, new-home market is positive, but challenges remain. Potential home buyers are sensitive to mortgage rate fluctuations, while builders continue to face headwinds, such as higher construction costs and shortages of buildable lots and skilled labor.”

These figures highlight the ongoing challenges and volatility in the housing construction market, influenced by factors such as material and labor shortages, as well as fluctuating demand. While the year-over-year increase in building permits suggests optimism among developers, the drop in housing starts and completions underscores the complexities of translating permits into actual construction and ultimately, into new homes ready for occupancy.

By Christine Stuart | News Director
https://nationalmortgageprofessional.com/news/housing-market-sends-mixed-signals-january-varied-construction-activity

The Fed could slash rates more than expected in 2024, Wells Fargo strategist Erik Nelson said. That’s because the job market is likely weaker than it looks on the surface.

Weakening job growth could be the negative catalyst that pushes the Fed to ease monetary policy.

Steep rate cuts from the Federal Reserve could be coming later this year thanks to weakening in the job market, which likely isn’t as robust as some of the latest data has made it out to be, according to Wells Fargo strategist Erik Nelson.

Speaking with Bloomberg TV on Monday, Nelson estimated that the Fed could cut interest rates 100-125 basis points over the next nine months, reflecting a quicker pace of easing than what investors or central bankers have suggested this year.

Markets are pricing in a 34% chance rates could but cut by 100 basis points by the end of the year, according to the CME FedWatch tool, while Fed officials have suggested 75 basis points of rate cuts are on the table in 2024.

Cuts will go deeper than anticipated as the economy continues to weaken, Nelson said.

“We need a catalyst, we need some data that shows these recent, strong data were just a blip. I think we’ll get that,” Nelson said.

That negative catalyst could come as soon as the next few weeks, Nelson added, and it could be evident in the job market, he said, which likely isn’t as strong as the numbers suggest.

On the surface, hiring remains robust in the US. The economy added 353,000 jobs in January, much more than expected. The unemployment rate, meanwhile, is at historic lows at 3.7%.

But much of that strength may be seasonal and no longer reflected in upcoming job reports, Nelson said.

“I wouldn’t say we’re necessarily in a recessionary labor market by any means … but to think that we are adding 350,000 jobs a month, I don’t really see any other data in the labor market that confirms that kind of trend,” he added, estimating that job growth was actually closer around 150,000 to 200,000 payrolls a month.

“As we see some of that residual seasonality fade out of those jobs numbers, say February, March, I think the narrative will flip back to the labor market isn’t as strong as we thought it was,” he added.

Other market commentators have warned that hiring activity could weaken in 2024 as tighter financial conditions take a toll on businesses. Though the jobless rate is low, continuing unemployment claims are hovering around 1.9 million, according to Fed data. That qualifies as near “recessionary levels,” market veteran Paul Dietrich said in a note late last year, and it is one of the handful of indicators that suggest the economy could be nearing a downturn.

New York Fed economists see a 61% chance the economy could tip into a recession by January 2025.

Those risks, though, haven’t damped enthusiasm among investors, who are still feeling optimistic about stocks. Everyday investors are feeling the most bullish on stocks in nearly 17 years, according to a sentiment indicator maintained by the Yale School of Management, and the S&P 500 continues to make news highs so far in 2024.

A top question on the minds of investors and consumers alike is when might the Federal Reserve make its first interest rate cut after two years of rapid hikes, which have sent mortgage and credit card rates soaring. But after Tuesday’s hotter-than-forecast inflation report, economists have a partial answer: Expect to wait longer.

Even before Tuesday’s inflation data, the Federal Reserve had signaled that it would take a cautious approach. Fed chair Jerome Powell told CBS News’ “60 Minutes” earlier this month that the central bank wants to have more confidence that inflation is receding “before we take that very important step of beginning to cut interest rates.”

The Federal Reserve began hiking rates in March 2022 to battle red-hot inflation, relying on an effective tool to depress consumer spending and tamp down price increases. The central bank’s 11 rate hikes since then have helped bring down the annual inflation rate to 3.1% in January from a high of 9.1% in June 2022, but January’s number was higher than economists had projected — and remains above the Fed’s goal of driving inflation down to 2%.

The Fed is “being very cautious when it comes to its decision making regarding rate cuts,” noted Jacob Channel, an economist at LendingTree, in an email. “The reason for this is because they don’t want to start cutting prematurely and end up making inflation worse.”

January’s hot inflation data illustrates the difficulty for the Fed in timing its first cut, he added. “For this reason, if you’re convinced that deep cuts are just over the horizon, you might be setting yourself up for disappointment,” Channel added.

When will the first cut happen? Economists have revised their forecasts following Tuesday’s sticky inflation report, with many of them now projecting the Fed’s first cut will come later in 2024 than they had earlier forecast. In other words, don’t hold your breath for a cut at either of its next two meetings, in March and May.

Earlier in the year, most economists pegged the first rate cut of 2024 for the Fed’s March 20 meeting. But as of Wednesday, only 1 in 10 continued to forecast a March rate cut.

“The initial market reaction sent expectations for a March rate cut to a below 10% probability — quite a shift after starting the year at 80%,” PNC Bank said in a Tuesday investment note.

Likewise, fewer economists are now predicting that the Fed will cut rates at its May 1 meeting. Currently, about one-third are still penciling in a May rate reduction, down from 90% earlier this year.

Instead, you’ll most likely need to wait until the Fed’s June 12 meeting to see the first rate cut, according to economists polled by FactSet.

“In our view, expectations for rate cuts are, and have been, too aggressive. Our base case does not anticipate rate cuts until closer to mid-year,” PNC noted.

What does this mean for your money?
With economists pushing back their rate-cut forecasts to mid-2024, the initial impact was on the stock market, with the Dow Jones Industrial Average falling 525 points, or 1.4%, on Tuesday.

Investors had been pushing stocks higher on expectations that the Fed would soon cut rates, which could lower costs for businesses and spur consumers to spend more — potentially juicing corporate profits.

For now, borrowers aren’t likely to get a break on loan terms anytime soon. Auto loans, credit card rates and other credit products that are based on the Fed’s benchmark rate will likely remain at or near their current levels until the first rate cut.

Mortgages are slightly different because they are influenced by the 10-year Treasury yield and economic indicators including inflation.

By Aimee Picchi
Edited By Anne Marie Lee
February 14, 2024 / 12:03 PM EST / CBS News
https://www.cbsnews.com/news/interest-rate-cut-2024-when-will-fed-cut-rates-inflation-experts/

How to choose the right refinance type and term
The rates advertised online often require specific conditions for eligibility. Your personal interest rate will be influenced by market conditions as well as your specific credit history, financial profile and application. Having a high credit score, a low credit utilization ratio and a history of consistent and on-time payments will generally help you get the best interest rates.

30-year fixed-rate refinance
For 30-year fixed refinances, the average rate is currently at 7.28%, an increase of 7 basis points over this time last week. (A basis point is equivalent to 0.01%.) A 30-year fixed refinance will typically have lower monthly payments than a 15-year or 10-year refinance, but it will take you longer to pay off and typically cost you more in interest over the long term.

15-year fixed-rate refinance
The average 15-year fixed refinance rate right now is 6.65%, an increase of 9 basis points compared to one week ago. Though a 15-year fixed refinance will most likely raise your monthly payment compared to a 30-year loan, you’ll save more money over time because you’re paying off your loan quicker. Also, 15-year refinance rates are typically lower than 30-year refinance rates, which will help you save more in the long run.

10-year fixed-rate refinance
The average rate for a 10-year fixed refinance loan is currently 6.45%, an increase of 2 basis points over last week. A 10-year refinance typically has the lowest interest rate but the highest monthly payment of all refinance terms. A 10-year refinance can help you pay off your house much quicker and save on interest, but make sure you can afford the steeper monthly payment.

To get the best refinance rates, make your application as strong as possible by getting your finances in order, using credit responsibly and monitoring your credit regularly. And don’t forget to speak with multiple lenders and shop around.

Refinance rate news
Refinance rates dropped significantly toward the end of 2023, bringing much-needed activity to the housing market. Since early February, however, rates have climbed back into the 7% range. The increase came after recent inflation and labor data made it clear to investors that the Federal Reserve won’t start cutting interest rates until early this summer. Higher mortgage rates make refinancing less attractive to homeowners, making them more likely to hold on to their existing mortgages.

30-year fixed refinance: 7.28%
15-year fixed refinance: 6.65%
10-year fixed refinance: 6.45%

Where will refinance rates end up in 2024?
Experts say slowing inflation and the Fed’s projected interest rate cuts should help push mortgage interest rates down to around 6% by the end of 2024, but that will depend on incoming economic data.

Over 82% of homeowners currently have interest rates below 5% on their property. If home loan rates stabilize over the next several months, more homeowners should be able to save money through refinancing. Yet in order for refinance applications to pick up in a meaningful way, rates would need to fall substantially, according to Mark Zandi, chief economist at Moody’s Analytics.

For homeowners looking to refinance, remember that you can’t time the market: Interest rates fluctuate on an hourly, daily and weekly basis, and are influenced by an array of macroeconomic factors. Your best move is to keep an eye on day-to-day rate changes and have a game plan on how to capitalize on a big enough percentage drop, said Matt Graham of Mortgage News Daily.

When Will Homeowners Benefit From a Refinance? Mortgage Refinance Rates on Feb. 16, 2024

Higher-than-expected inflation in Jan. likely pushes back interest rate cuts by the Federal Reserve by a little bit. Before last month’s inflation reading, we looked for the Fed to make a small cut at its May 1 meeting. Now, its June meeting looks like a better bet. While the overall trend in inflation is still down, price gains aren’t moderating as fast as the Fed would like. It will want to see more progress first. The bigger picture remains the same: Only a modest drop in rates this year, despite persistent hopes on Wall Street for more and faster cuts. Too many investors have declared inflation beaten too soon…one cause of the recent run-up in stocks.

– The Klipinger Letter
Reported from Washington, D.C. • kiplinger.com • Vol. 101, No. 7 https://kiplinger.com