This past Tuesday, 9/17th we were straight-up dancing around when we heard the news—Federal Reserve just cut rates by 50 basis points! 🤯🤯

Jerome Powell went BIG! First rate cut in four years!

And let’s be honest, we needed this. If you’re anything like us and most multifamily general partners, we’ve been waiting on this moment forever…

✔️ Loan maturity is on the horizon.

✔️ Debt service is now 2.5x what it was when we first bought.

✔️ Property value depression due to cap rates rising with loan costs.

The recent policy shift is expected to kick off a series of rate cuts later this year and into 2025. 

So, what does that mean for your money?

Lower rates = cheaper borrowing costs for most loans.

This week’s rate cut, “has already been baked in,” says Marcia Kaufman, CEO of Bayport Funding.

Mortgage rates could fall more if the Fed signals deeper cuts than currently anticipated.

But here’s the catch: Lower mortgage rates might not make buying a home easier.

In fact, it might make it harder. 👀

Why?

More buyers = more competition for the limited housing supply, pushing prices up.

For first-time homebuyers, that’s a tough pill to swallow.

We’re currently short millions of housing units in the U.S., largely due to developers halting projects because of high interest rates.

This means that the supply of new units is not keeping pace with the growing demand.

As a result, from 2025-2027, we can expect even fewer housing units to be available, which will likely drive up competition and prices in the market.

👉 Lucky for us? Our build-to-rent development in Melissa, Texas—118 single-family townhomes—is right on track.

We avoided taking loans early on, so we dodged unnecessary pressure.

Now, as we enter the vertical phase, loan terms are much more favorable than they were just a few months ago. 💪

While others are halting construction, our units will hit the market just in time for this demand surge.

Here’s the truth: Not all investments are created equal.

Sometimes, it’s not just the investment—it’s the vision, the team, and the execution that matter.

A killer opportunity can turn into a flop in the wrong hands.