Your clients are at a crossroads. They are finding good properties with significant potential, but a lot of them are waiting for rates to drop below 6% or even 5%. That patience makes sense on paper. In actuality, it's putting them on the sidelines as prices go up, availability gets tighter, and more serious buyers make transactions they could have made.
Most predictions for 2026 say that rates will only go down slightly, and are not expected to hits 5%. This is a clear challenge for brokers who give advice to investors. Understanding why delaying can slowly eat away at returns helps your clients make better, more timely choices.
Changes in interest rates are just one part of the investment equation. A lot of investors pay too much attention to headline rates and don't think about how much it costs to keep high-rate debt.
Every month an investor waits to refinance, they keep paying higher interest rates, which lowers their net operating income and slows the growth of their portfolio. Even small rate cuts of 50 to 75 basis points might greatly boost cash flow, but waiting for the "perfect" rate could mean missing out on good refinance opportunities.
This is where knowledge is important for brokers: they can see how much it costs to wait, but they don't know when rates will go down again.
Look for example, at what happened between early 2022 and 2025: mortgage rates went from 3% to over 6%, but the S&P CoreLogic Case-Shiller Home Price Index says that home prices went up by over 17% across the country.
Investors who waited for better rates lost ground in two ways:
History shows that declining rates tend to bring buyers back into the market quickly. When rates ease, competition increases, pricing pressure returns, and transaction timelines compress.
For investors, this can mean:
Investors are generally in better situations when brokers assist them in moving before demand rises, both in terms of price and financing.
For real estate investors, cash flow is the real measure of how well a property does each month. Small changes in rates can have a big effect on debt service coverage, portfolio liquidity, and the ability to reinvest.
Waiting for a big reduction in interest rates while paying more than you should might slowly eat away at your returns. On the other hand, strategically refinancing or repositioning debt, especially in today's rate environment, can lead to immediate operational gains.
This is where brokers really help: change the conversation from "where are rates going?" to "how much does today's structure cost you?"
Current forecasts paint a sobering picture for those expecting dramatic declines:
Major Housing Forecasters for 2026:
Even the most hopeful predictions say that rates won't drop below 6% until late 2026 or early 2027, and that's only if the economy cooperates. Inflation is still high at 2.7%, which is above the Federal Reserve's 2% target. This means that rate relief may come slower than investors want.
Meanwhile, the market isn't waiting. The National Association of Realtors says that home prices will go up by 4% in 2026. Even cautious projections say they will go up by 2% to 3%. Waiting a month for a half-point decline in rates might cost you thousands of dollars in borrowing costs.
Brokers should frame conversations around opportunity cost rather than interest expense.
Effective Client Conversations:
Lending partners should talk about opportunity cost instead of interest expenses when discussing interest rate risk. Waiting for a 6% rate costs about $X in missed rental income over Y months, plus $Z in property value growth. Even if rates go down to what you want, you'll still pay more for the same home that makes the same amount of money. In that case, the only person who wins is the investor who buys today and refinances tomorrow.
Data to Share:
Investors who are waiting for better rates might lessen expenses by carefully choosing a loan product.
Bridge-to-Permanent Strategies: Acquire properties at current rates with short-term bridge financing, then refinance to long-term fixed rates when conditions improve. This method locks in today's prices while still allowing for future rate decreases.
DSCR Loans: These loans are based on the cash flow of the property rather than the borrower's income, which means they frequently close faster and need less paperwork. Rate premiums over regular mortgages are usually between 0.5% and 1.0%; however, for investment properties, the quickness and certainty of the loan can make up for the extra cost.
Interest-Only Options: Some programs allow investors wait for a refinancing opportunity by offering initial interest-only periods. This method lowers monthly costs, but it works best for properties that are likely appreciate or have value-add potential.
RCN Capital has made more than 37,000 business-purpose loans worth more than $8.2 billion since being founded in 2010. This gives us the steadiness and experience we need when the market suddenly changes.
Investors who are waiting for an ideal interest rate risk missing out on opportunities to grow their wealth. Visit RCN Capital's broker page to learn how flexible financing options provide your clients with the freedom to act without worrying about rates.