Norada Real Estate Investments

Today’s Mortgage Rates, Feb 4: 30-Year Fixed Rate Holds Steady Around 5.98%

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As of February 4th, if you're thinking about buying a home or looking to refinance your current mortgage, I've got good news: mortgage rates are offering a reassuring sense of stability. The most popular loan, the 30-year fixed mortgage rate, is holding nicely under the 6% mark, currently sitting at 5.98%, according to the latest data from Zillow. This figure is a welcome sight, representing a significant year-over-year decrease of 61 basis points compared to where we were at this time last year. It’s a clear sign that affordability has improved, and that’s a big win for many people.

Today's Mortgage Rates, Feb 4: 30-Year Fixed Rate Holds Steady Around 5.98%

The 15-year fixed mortgage rate is also showing robust performance, standing at 5.50%. This is even 73 basis points lower than this time last year, which is fantastic news for those who can comfortably manage a higher monthly payment and want to build equity faster. These numbers paint a positive picture for both aspiring homeowners and those looking to leverage their current homeownership.

Today’s Mortgage Rates: A Snapshot

Let’s break down what those numbers actually mean for different types of loans. Based on Zillow’s data as of today, February 4th, here’s how the averages are stacking up:

Loan Type Average Rate
30-year fixed 5.98%
20-year fixed 6.06%
15-year fixed 5.50%
5/1 ARM 5.92%
7/1 ARM 6.12%
30-year VA 5.53%
15-year VA 5.23%
5/1 VA 5.07%

Understanding the Market Context

I always feel it’s important to look beyond just the headline numbers. Let’s dig a little deeper into what these individual rates signify:

The Dependable 30-Year Fixed Rate

For most people, the 30-year fixed rate is the gold standard, and at 5.98%, it's incredibly attractive. This loan type offers that precious predictability. You know exactly what your principal and interest payment will be for the next three decades. In a market that has seen its share of ups and downs over the past couple of years, having that long-term stability is a huge comfort, especially when you're making one of the biggest financial decisions of your life.

The Equity-Building 15-Year Fixed Rate

The 15-year fixed rate, currently at 5.50%, is a fantastic option if you’re in a strong financial position. Yes, your monthly payments will be higher than with a 30-year loan, but the benefits are significant. You'll pay off your mortgage much faster, and more importantly, you'll save a substantial amount on interest over the life of the loan. I’ve seen many clients benefit immensely from this path, building substantial equity in their homes years earlier than they would have otherwise.

Adjustable-Rate Mortgages (ARMs): A Closer Look

Adjustable-rate mortgages, like the 5/1 ARM at 5.92% and the 7/1 ARM at 6.12%, are showing rates that are very close to their fixed-rate counterparts. Historically, ARMs offered a lower initial rate to entice borrowers, but that gap has narrowed significantly. While they can offer a lower payment for the first 5 or 7 years, the real gamble comes with the subsequent adjustments. Given how stable the fixed rates are right now, I’d be cautious about choosing an ARM unless you have a very specific, short-term plan for the property or anticipate rates falling considerably in the future. Most people I speak with find the security of a fixed rate far more appealing today.

The Value of VA Loan Products

It’s crucial to highlight the continued strength of VA loan products. These are designed to support our veterans and active-duty service members, and they consistently offer competitive terms. With the 30-year VA at 5.53% and the 15-year VA at 5.23%, these rates often beat conventional loan options. For eligible borrowers, VA loans are not just about lower interest rates; they often come with no down payment requirements and no private mortgage insurance (PMI), which can translate into significant savings.

What Today’s Rates Mean for You

Understanding these rates is one thing, but how do they impact you specifically?

  • For Refinancers: If you took out a mortgage when rates were higher, say above 6.5% or even 7%, now is absolutely the time to explore refinancing. The year-over-year decrease I mentioned earlier means you could potentially lower your monthly payments, shorten your loan term, or tap into your home's equity. It's a smart financial move to review your current mortgage and see if you can benefit from these improved rates.
  • For New Buyers: The stability of rates under 6% is precisely what helps buyers budget effectively. Knowing your biggest housing expense (your mortgage payment) is predictable makes the homeownership journey less stressful and more achievable. This environment allows buyers to feel more confident in their long-term financial planning.
  • For Investors: Lower mortgage rates can significantly improve the cash flow on investment properties. This means that rental income has a better chance of covering the mortgage payment and other expenses, potentially leading to a higher return on investment. For those looking at rental properties in strong markets, today’s rates make those deals look even more enticing.

Recent Market Moves and What They Tell Us

It’s not just about today's numbers; it’s about understanding the forces that shape them. I’ve been watching the market closely, and a few recent events stand out:

  • The $200 Billion Bond Buy: Not too long ago, we saw rates drop below 6% for many because of a significant move by government-sponsored enterprises like Fannie Mae and Freddie Mac. They were directed to purchase a substantial amount of mortgage-backed securities. This injection of liquidity is designed to directly improve affordability for borrowers, and it clearly had a positive effect on bringing rates down.
  • The “Greenland Jump” Phenomenon: You might have heard about a sudden, albeit temporary, spike in rates. This event, which was linked to geopolitical news about the U.S. potentially acquiring Greenland, really highlighted how sensitive the mortgage market can be to global events. It showed me that even seemingly distant concerns can have a ripple effect on something as fundamental as mortgage rates. It's a vivid reminder that unexpected news can influence market behavior.
  • The Fed's Pause: The Federal Reserve made its decision at its January 28th meeting to keep its benchmark interest rate steady. This follows a series of rate cuts in late 2025, and the Fed’s continued stance of maintaining the target range between 3.50% and 3.75% signals a commitment to stability. While the Fed rate isn't directly mortgage rates, it strongly influences them, so this pause is a key factor in the current market.

Looking Ahead: What's Next for Mortgage Rates?

My opinion is that we're likely to see mortgage rates continue to hover around that 6% mark in the near future. If inflation keeps showing signs of cooling down, that could exert even more downward pressure on rates. Keep an eye on Federal Reserve pronouncements and the movement of Treasury yields, as these will be the main drivers dictating rate trends for the first half of 2026.

There’s also a lot of talk about how rate drops impact the market. Analysts from the National Association of Realtors (NAR) predict that every 1% drop in mortgage rates could make an additional 5.5 million households eligible to buy a home. While this is fantastic for increasing homeownership, it’s also something to consider, as increased demand could put upward pressure on home prices. It’s a delicate balance, for sure.

In Conclusion: A Favorable Moment

To wrap it up, today, February 4th, mortgage rates are offering a welcome sense of stability. With the 30-year fixed at 5.98% and the 15-year fixed at 5.50%, both showing significant improvement from last year, this is a valuable time for anyone looking to make a move in the housing market. Whether you’re buying your first home, looking to upgrade, or considering refinancing an existing loan, the current rate environment provides an excellent opportunity to secure favorable terms.

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Mortgage Rates Today, February 4: 30-Year Refinance Rate Drops by 2 Basis Points

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For those keeping a close eye on their homeownership costs, the news is that on February 4, 2026, the national average 30-year fixed refinance rate has nudged down by 2 basis points, settling at 6.56%. While this might not sound like a huge swing, it's a welcome sign of potential savings for many homeowners looking to adjust their current mortgage terms.

It's always a bit of a game watching mortgage rates, isn't it? Each day, and even each week, can bring a little shift. This particular Tuesday sees a slight dip in a very important rate, the 30-year fixed refinance. After seeing it inch up yesterday, today’s move back down, even by a fraction, is what we’re all looking for. It hints at continued stability, and frankly, in today's housing market, any stability is good news.

Mortgage Rates Today, Feb 4, 2026: 30-Year Refinance Rate Drops by 2 Basis Points

What the Numbers Are Saying Today

According to the latest data from Zillow, here's how the major refinance rates are stacking up on February 4, 2026:

Loan Type Today's Average Rate Previous Day's Average Last Week's Average Change from Last Week Notes
30-Year Fixed Refi 6.56% 6.58% 6.58% Down 2 bps Most popular, offers predictable payments.
15-Year Fixed Refi 5.52% 5.63% 5.63% Down 11 bps Faster equity build, lower lifetime interest.
5-Year ARM Refi 6.92% 6.93% 6.93% Down 1 bps Lower initial payments, but rate can change.

Note: Basis points (bps) are commonly used in finance to represent small changes in percentages. 1 basis point = 0.01%. So, a drop of 2 basis points is a 0.02% decrease.

Digging Deeper into the Rates

Let's break down what these numbers really mean for you.

The 30-Year Fixed Refinance: Our Benchmark

The 30-year fixed refinance rate at 6.56% is the one that most people pay attention to. It's the longest term available, offering the comfort of knowing your monthly payment will stay the same for three decades. Today's rate is just a hair higher than yesterday's average but crucially, it's lower than where we were at the start of the week. This stability is important. It suggests that lenders are comfortable offering these rates, and it gives homeowners a clearer picture if they’re considering refinancing to save money over the long haul. My own experience tells me that even a small drop here can make a difference for families trying to manage their budgets.

The 15-Year Fixed Refinance: A Faster Path

Now, look at the 15-year fixed refinance rate. This one saw a much more noticeable drop, coming in at 5.52%. That's down a full 11 basis points from last week! This is fantastic news for homeowners who want to pay off their homes faster and significantly cut down on the total interest they pay over the life of the loan. The trade-off, of course, is that the monthly payments will be higher because you're cramming the same loan amount into half the time. But for those who can manage it, this is a really attractive option right now. I've advised many clients over the years who chose the 15-year, and they're always glad they did when they see their mortgage-free date coming up so much sooner.

The 5-Year ARM: A Small Wobble

The 5-year adjustable-rate mortgage (ARM) saw a very minor dip, moving from 6.93% to 6.92%. ARMs are designed for borrowers who might be looking for lower payments in the initial years, with the understanding that their rate will change later on. However, with the 30-year fixed rate holding relatively steady and even showing slight improvements, the appeal of an ARM right now seems a bit limited, unless you have very specific short-term financial plans.

What This Means for You: A Borrower's Perspective

These numbers, while seemingly small, have real-world impacts.

  • For Those Looking to Refinance: If your current mortgage rate is considerably higher than 6.56%, or even 5.52% for the 15-year option, you should absolutely be looking into refinancing. Refinancing isn't just about chasing the lowest rate; it's about making your mortgage work best for your financial goals. Experts often suggest that a refinance makes sense if you can lower your rate by at least half a percentage point to three-quarters of a percentage point. For example, someone who took out a mortgage at 7.25% a couple of years ago could see substantial monthly savings by refinancing now, potentially saving hundreds of dollars each month on a significant loan.
  • For New Homebuyers: Stability in rates is a breath of fresh air. It means you can plan more confidently when budgeting for a new home purchase. While affordability is still a hot topic in many areas due to housing prices, predictable mortgage rates make the financing side of things a bit clearer.
  • For Investors: Even slight dips in rates can sometimes signal a good time for real estate investors to look for opportunities. This is especially true in areas with strong rental demand where consistent property ownership can yield good returns.

The Bigger Picture: Why Are Rates Moving (Or Not Moving)?

It’s never just one thing that dictates mortgage rates. Several factors are at play:

  • Federal Reserve Policy: The Federal Reserve's decisions on interest rates are always the biggest driver. While they haven't cut rates recently, their pronouncements about future policy heavily influence the market.
  • Inflation: Inflation is the number one enemy of low mortgage rates. When inflation is high, the Fed tends to keep rates higher to cool down the economy. Easing inflation gives them more room to consider rate cuts, which would likely push mortgage rates down.
  • Economic Reports: Crucial economic data, like the Consumer Price Index (CPI) and jobs reports, are closely watched. Delays in these reports, like we've seen recently due to a partial government shutdown, can create uncertainty and make it harder for analysts (and us!) to predict rate movements.
  • Geopolitical Events: Global events and political stability can also send ripples through the financial markets, affecting everything from stock prices to mortgage rates.
  • Lender Competition: Sometimes, lenders compete aggressively to win business, which can lead to slightly better rates, especially for those with excellent credit scores and strong financial profiles.

We've seen how political statements or international news can cause mortgage rates to jump or dive very quickly. For instance, recent presidential proposals aimed at boosting home affordability were met with a brief dip in mortgage rates, only for them to climb again due to global tensions related to something as seemingly far-flung as trade agreements impacting raw material prices which directly affect building costs.

Looking Ahead: What's Next for Mortgage Rates?

Predicting the future with certainty is impossible, but analysts are generally expecting mortgage rates to stay in a relatively tight range for the coming weeks. The 6.4%–6.6% range seems to be the consensus view. Any significant signs of inflation continuing to cool down could put downward pressure on these rates, potentially allowing for more substantial drops. Keep an ear to the ground for news from the Federal Reserve; their upcoming meetings and statements will continue to be the main story for mortgage rate trends as we move into spring.

The Bottom Line for Today's Rates

So, to wrap it up: on February 4, 2026, the 30-year fixed refinance rate is at 6.56%. It’s a minor tick up from yesterday but a positive sign compared to earlier in the week. The 15-year fixed rate is showing a much stronger performance with a drop to 5.52%, making it a very appealing option for those who want to build equity quickly.

The 5-year ARM is holding relatively steady at 6.92%. This is a market that’s showing resilience. For homeowners considering a refinance, it presents a good window of opportunity to potentially lower your monthly payments and save on interest over time. It’s always a good idea to get personalized quotes to see exactly how these national averages translate to your specific situation.

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(800) 611-3060

View All Properties 

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Why Real Estate Can Thrive During Tariffs Led Economic Uncertainty

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Is economic uncertainty giving you the jitters? While tariffs and market volatility might sound scary, believe it or not, real estate can actually thrive during tariffs-led economic uncertainty. It's all about understanding market dynamics and employing creative strategies. In this article, I'll share my insights on how you can leverage market fluctuations to your advantage and why real estate can be a safe haven when other investment options seem risky.

Why Real Estate Can Thrive During Tariffs Led Economic Uncertainty

Understanding the Economic Anxiety

It's easy to get caught up in the headlines when news about trade wars and fluctuating interest rates floods the media. The stock market often reacts with knee-jerk dips, and suddenly, everyone's retirement accounts seem a little less secure. I know, I've been there myself, watching the numbers fluctuate and wondering if I should be making changes. However, panicking is rarely the answer. Instead, it's crucial to understand what's driving this anxiety and how it affects different sectors, particularly real estate.

When there's talk about tariffs and trade tensions, businesses start to worry about increased costs and potential disruptions to supply chains. This can lead to:

  • Reduced investments
  • Hiring freezes
  • Overall economic slowdown

The stock market, being forward-looking, reflects these anxieties almost immediately.

Why Real Estate Can Be a Safe Haven

Now, here's where the real estate market comes into play. Unlike stocks, real estate is a tangible asset. It's not just numbers on a screen; it's a physical property that provides shelter, serves as a business location, and holds intrinsic value. This inherent value makes real estate a relatively stable investment during times of uncertainty. Here's why:

  • Essential Need: Everyone needs a place to live or conduct business, regardless of economic conditions. This fundamental demand helps to keep the real estate market afloat, even when other sectors are struggling.
  • Inflation Hedge: Real estate often acts as a hedge against inflation. As prices for goods and services rise, so does the value of real estate, helping to preserve your investment's purchasing power.
  • Rental Income: Investment properties can generate rental income, providing a steady stream of cash flow that is less susceptible to market volatility.
  • Tangible Asset: Unlike stocks, real estate is a physical asset. You can see it, touch it, and improve it, making it a more secure investment in times of uncertainty.
  • Long-Term Investment: Real estate is generally a long-term investment. This means that you are less likely to be affected by short-term market fluctuations.
  • Opportunity to add value: With real estate there is the possibility of adding value to the property and thus increasing its worth.

How Economic Uncertainty Can Create Real Estate Opportunities

The fear and uncertainty caused by tariffs and market downturns can actually create unique opportunities for savvy real estate investors. Here's how:

  • Motivated Sellers: When the economy is shaky, some homeowners may feel pressured to sell quickly. They might be facing job losses, financial difficulties, or simply a desire to downsize and reduce their financial burden. This can lead to motivated sellers who are willing to negotiate on price and terms.
  • Reduced Competition: During uncertain times, many traditional buyers may become hesitant to enter the market. Rising interest rates and tighter lending standards can sideline potential homebuyers, reducing competition and giving investors an edge.
  • Distressed Properties: Economic downturns can lead to an increase in foreclosures and distressed properties. These properties often come with significant discounts, providing opportunities for investors to buy low and potentially generate substantial returns.

Specific Strategies for Thriving in a Tariff-Led Environment

So, how can you specifically leverage these opportunities to thrive in the real estate market during a tariff-led economic uncertainty? Here are some strategies that I believe are particularly effective:

  • Focus on Value-Add Properties: Look for properties that have the potential for improvement. This could involve renovations, upgrades, or even rezoning. By adding value to a property, you can increase its appeal and potential rental income, making it more resilient to market fluctuations.
  • Explore Emerging Markets: Consider investing in emerging markets or up-and-coming neighborhoods. These areas often offer lower prices and higher potential for growth compared to established markets. Thorough research and due diligence are essential when exploring emerging markets.
  • Diversify Your Portfolio: Don't put all your eggs in one basket. Diversify your real estate portfolio by investing in different types of properties (residential, commercial, etc.) and in different geographic locations. This will help to mitigate risk and protect your investments from localized economic downturns.
  • Be a Problem Solver: Many sellers facing difficulties want a quick and easy solution to their real estate problems. This is where you can step in and offer a solution that works for both of you. By being a problem solver, you can find lucrative real estate deals that others might overlook.

Example Scenario:

Imagine a homeowner who owns a small manufacturing business. Due to new tariffs on imported materials, their business is struggling. They are behind on mortgage payments and worried about foreclosure. A traditional buyer might be hesitant to purchase the property due to the uncertainty surrounding the business.

However, as a savvy real estate investor, you can offer a solution. You might propose to buy the property at a fair price, allowing the homeowner to avoid foreclosure and get back on their feet. You can then repurpose the property, rent it out, or even sell it for a profit once the economy stabilizes.

The Importance of Due Diligence

While real estate can offer opportunities during times of uncertainty, it's crucial to conduct thorough due diligence before making any investment decisions. This includes:

  • Market Research: Understand the local market conditions, including vacancy rates, rental rates, and property values.
  • Property Inspection: Have the property inspected by a qualified professional to identify any potential issues or repairs.
  • Financial Analysis: Carefully analyze the potential cash flow, expenses, and return on investment for each property.
  • Legal Review: Consult with a real estate attorney to review all contracts and documents.

My Personal Perspective

I've seen firsthand how economic uncertainty can create both challenges and opportunities in the real estate market. While it's important to be cautious and do your research, I believe that real estate can be a valuable asset in any portfolio, especially during times of volatility. By understanding market dynamics, employing creative strategies, and conducting thorough due diligence, you can position yourself to thrive in the real estate market, regardless of what the economy throws your way.

Final Thoughts

Don't let the headlines scare you away from the real estate market. While tariffs and market downturns can create anxiety, they also present unique opportunities for those who are prepared. By understanding the fundamentals of the market, being creative, and conducting thorough due diligence, you can leverage these opportunities to build a successful real estate portfolio. Real estate offers a tangible asset that can provide stability, income, and long-term growth, making it a valuable addition to any investment strategy, especially during times of economic uncertainty.

Real Estate Stability in Times of Economic Uncertainty

Tariff‑driven uncertainty can disrupt markets, but real estate often thrives as a safe haven.

In 2026, investors are turning to turnkey rentals for consistent cash flow and appreciation when other assets face volatility.

Norada Real Estate helps investors secure turnkey properties designed to perform even in uncertain conditions—delivering passive income and long‑term growth regardless of trade or policy shifts.

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Best Places to Invest in Single-Family Rental Properties in 2026

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Looking for the best places to invest in single-family rentals? You've come to the right place! Based on a report by ATTOM, the top 10 counties for buying single-family rentals offer a sweet spot of wage growth and attractive rental yields. Keep reading to discover which counties made the list and why they're poised for success.

Best Places to Invest in Single-Family Rental Properties

Why Single-Family Rentals?

Before we dive into the specific counties, let's quickly recap why single-family rentals (SFRs) are a popular investment choice. They offer several benefits:

  • Consistent Cash Flow: Rental income provides a steady stream of revenue.
  • Appreciation Potential: Real estate tends to increase in value over time.
  • Tax Advantages: Depreciation, mortgage interest, and other expenses can be tax-deductible.
  • Tangible Asset: Unlike stocks or bonds, you can physically see and manage your investment.

However, not all markets are created equal. Finding the right location is crucial for maximizing returns and minimizing risks. Factors like job growth, population trends, affordability, and local regulations can significantly impact the profitability of an SFR investment.

The Big Picture: Rental Yields

ATTOM's Q1 2025 Single-Family Rental Market Report paints an interesting picture of the SFR market. Across the 361 counties analyzed, the projected annual gross rental yield for three-bedroom properties in 2025 is 7.45%. While that's a decent return, it's slightly down from the 2024 average of 7.52%.

The report suggests that rental yields are expected to decline in nearly 60% of the analyzed counties between 2024 and 2025. This is largely due to home prices increasing faster than rents in many areas. In fact, median single-family home prices rose faster than median rents in 54% of the markets studied. Between 2024 and 2025, median single-family home prices have risen in approximately two-thirds of the counties with sufficient data, typically increasing by around 10%, which is a big factor.

This means that as an investor, you need to be extra selective and strategic when choosing your next rental property.

How Were the Top 10 Counties Selected?

To identify the top counties, ATTOM looked for areas where:

  • Wage Growth is Positive: Rising wages indicate a healthy local economy and the ability for renters to afford higher rents.
  • Projected Rental Yields are Attractive: A higher rental yield means a better return on investment.

The report specifically highlighted 28 “SFR Growth” counties where average wages increased over the past year and projected annual gross rental yields for three-bedroom properties in 2025 exceed 10%.

The Top 10 Counties for Buying Single-Family Rentals

Alright, let's get to the list you've been waiting for! Here are the top 10 counties, according to ATTOM's data, along with some additional insights:

  1. Suffolk County, NY
    • Year-over-year wage growth: 7%
    • 2025 Annual Gross Rental Yield: 18%
    • Why it's great: Suffolk County, located outside of New York City, benefits from its proximity to a major employment hub while offering more affordable housing options. The strong rental yield and solid wage growth make it an attractive market for SFR investors.
  2. Atlantic County, NJ
    • Year-over-year wage growth: 2%
    • 2025 Annual Gross Rental Yield: 18%
    • Why it's great: Atlantic City may be what you think of when you think of Atlantic County, but there are plenty of rentals that can be found.
  3. Jefferson County, AL
    • Year-over-year wage growth: 9%
    • 2025 Annual Gross Rental Yield: 16%
    • Why it's great: As the home to Birmingham, Jefferson County boasts a diverse economy and a growing population. The combination of strong wage growth and a healthy rental yield makes it a promising market.
  4. Mobile County, AL
    • Year-over-year wage growth: 5%
    • 2025 Annual Gross Rental Yield: 19%
    • Why it's great: Mobile's economy is driven by industries such as aerospace, shipbuilding, and manufacturing. The relatively low cost of living and attractive rental yields make it an appealing option for investors.
  5. Ector County, TX
    • Year-over-year wage growth: 5%
    • 2025 Annual Gross Rental Yield: 15%
    • Why it's great: Ector County, home to Odessa, is a major player in the oil and gas industry. While this sector can be volatile, the area's strong job market and competitive rental yields make it a worthwhile consideration.
  6. Indian River County, FL
    • Year-over-year wage growth: 2%
    • 2025 Annual Gross Rental Yield: 12%
    • Why it's great: Indian River County may be located in Florida, and the city itself may draw some tourists, but the lower wage growth is a little offsetting.
  7. St. Louis City, MO
    • Year-over-year wage growth: 7%
    • 2025 Annual Gross Rental Yield: 12%
    • Why it's great: St. Louis City offers a mix of affordability, cultural attractions, and job opportunities. The strong wage growth and attractive rental yield make it a compelling market for SFR investors.
  8. Litchfield County, CT
    • Year-over-year wage growth: Not Specified
    • 2025 Annual Gross Rental Yield: 17%
    • Why it's great: Litchfield County combines a rural setting with proximity to major metropolitan areas. The high rental yield, despite the lack of specific wage growth data, suggests a strong demand for rental properties.
  9. Charlotte County, FL
    • Year-over-year wage growth: 4%
    • 2025 Annual Gross Rental Yield: 16%
    • Why it's great: With its beautiful beaches and sunny weather, Charlotte County attracts both tourists and retirees. The steady wage growth and solid rental yield make it a potentially lucrative market for SFR investments.
  10. Saint Clair County, IL
    • Year-over-year wage growth: 8%
    • 2025 Annual Gross Rental Yield: 16%
    • Why it's great: Located near St. Louis, Saint Clair County benefits from a strong regional economy. The robust wage growth and attractive rental yield make it an appealing option for investors.

Beyond the Numbers: Due Diligence is Key

While these counties show promise based on ATTOM's data, it's important to remember that real estate investment is never a sure thing. Before making any decisions, you need to conduct thorough due diligence. This includes:

  • Analyzing Local Market Conditions: Research vacancy rates, average rents, and property values in specific neighborhoods.
  • Evaluating Property Condition: Inspect properties carefully for any potential repairs or maintenance issues.
  • Understanding Local Regulations: Familiarize yourself with zoning laws, building codes, and landlord-tenant laws.
  • Assessing Risk Tolerance: Determine how much risk you're willing to take on and invest accordingly.

I've seen too many investors jump into deals without doing their homework, only to end up with costly mistakes. Take the time to research and understand the market before committing to any investment.

My Personal Take:

In my opinion, while the data from ATTOM is a great starting point, it's crucial to consider your individual investment goals and risk tolerance. For example, if you're looking for a more stable, long-term investment, you might prioritize counties with consistent job growth and lower volatility. On the other hand, if you're willing to take on more risk for potentially higher returns, you might consider markets with emerging industries or rapid population growth. Also, visit the areas of interest and observe things yourself.

Final Thoughts

Investing in single-family rentals can be a rewarding way to build wealth and generate passive income. By carefully analyzing market trends, conducting thorough due diligence, and considering your personal investment goals, you can increase your chances of success.

The top 10 counties for buying single-family rentals, as identified by ATTOM, offer a compelling combination of wage growth and attractive rental yields. However, remember that these are just starting points. Always do your research and consult with experienced professionals before making any investment decisions.

Top Markets for Single-Family Rental Investments

Single‑family rentals remain one of the strongest real estate plays. Affordable entry points, steady demand, and appreciation make them ideal for investors seeking both cash flow and long‑term growth.

Norada Real Estate helps investors acquire turnkey single‑family properties in high‑potential U.S. markets—delivering immediate rental income and scalable wealth opportunities.

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Best Turnkey Rental Markets in Texas for Out-of-State Investors (2026)

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If you're an out-of-state investor looking to dive into the Texas real estate market for turnkey rental properties, you're smart to be considering the Lone Star State. For 2026, Texas stands out as a top-tier destination due to its landlord-friendly laws, absence of state income tax, and continuous population boom, making markets like Dallas-Fort Worth, San Antonio, Houston, and El Paso particularly attractive for a blend of solid cash flow and long-term growth.

Best Turnkey Rental Markets in Texas for Out-of-State Investors

As someone who's been following the real estate world for a while, I can tell you that Texas is still buzzing. It’s not just the sheer size of the state; it’s the driving forces behind its growth that make it so appealing. For those of us investing from afar, the idea of “turnkey” is incredibly attractive. It means stepping into a property that's already renovated, rented out, and often managed by a professional team. This minimizes the headaches and allows for a smoother, more passive investment experience.

Why Texas Continues to Shine for Investors

Let's break down why Texas is different and why it's a magnet for investors, especially those from out of state.

  • Landlord-Friendly Laws: This is a big one. Texas generally sides with property owners. Eviction processes can be quicker, and there are fewer restrictions on things like security deposits and late fees compared to some other states. This provides a sense of security for investors.
  • No State Income Tax: Imagine keeping more of your hard-earned rental income. Texas doesn't have a state income tax, which is a significant financial advantage for investors. While you'll deal with property taxes (more on that later!), the absence of state income tax is a major plus.
  • Population Growth: People are flocking to Texas for jobs, affordability, and a better quality of life. This consistent influx of residents naturally fuels demand for housing, both for sale and for rent, which is music to an investor's ears.

Top Turnkey Rental Markets in Texas for 2026

When I look at markets for turnkey investments, I'm searching for a sweet spot: good rental income now and the potential for property values to climb over time. Here are the ones that really stand out for me in Texas for 2026.

1. Dallas-Fort Worth (DFW) Metroplex: The All-Around Powerhouse

DFW is consistently ranked as a top real estate market, and for good reason. It's not just one city; it's a massive, interconnected region with a diverse and strong economy.

  • What Makes It Great: DFW is a job-growth machine, attracting businesses and talent from all over. This translates directly into a strong rental demand. The forecast for property appreciation over the next three years is indeed promising, hitting over 11%.
  • Where to Look for Turnkey:
    • Northern Suburbs (McKinney, Frisco, Allen): These areas are generally more upscale, with excellent schools and amenities. They tend to attract long-term, stable tenants and offer good appreciation potential. You might find your turnkey properties here are a bit pricier, but they often come with a more reliable rental income and tenant base.
    • Lower-Cost Entry Points (Sherman, Denison): If you're looking to get into the DFW market with a smaller initial investment, these cities north of the metroplex offer more affordable homes. They are seeing growth and can present good opportunities for cash flow.

2. San Antonio: The Value Investment

San Antonio often gets overshadowed by its bigger neighbors, Austin and Dallas, but that's part of its charm for investors. It offers a more affordable entry point without sacrificing economic stability.

  • Why It's a “Value Play”: The median home prices here are often more manageable, usually falling under the $300,000 mark. This makes it easier to acquire multiple properties or get started with a smaller budget.
  • Economic Pillars: San Antonio boasts a robust economy, significantly bolstered by a strong military presence (think Joint Base San Antonio) and a rapidly expanding medical sector. These are stable job markets that provide a consistent pool of renters.
  • Prime Turnkey Neighborhoods:
    • Near the Medical Center: This area naturally attracts healthcare professionals and their families who are looking for convenient and comfortable housing.
    • Near Northwest Side: This region is also seeing steady demand from families and professionals alike.

Here Are Two Investor‑Ready Properties for Sale in San Antonio:

Property Specs & Build Year Price Monthly Rent Rent/Value Ratio Cap Rate Neighborhood NOI Cash Flow Key Highlights
Arid Way 3 Bed, 2 Bath, 1,276 sqft, Built 2022 $249,899 $1,495 0.6% 3.8% A‑ $797 Newer construction, solid entry‑level rental investment
Noble Canyon 3 Bed, 2 Bath, 1,512 sqft, Built 2018 $249,900 $1,650 0.7% 4.4% A+ $920 Higher yield potential, strong neighborhood appeal

Both properties are competitively priced under $250K, offering strong rental demand and positive cash flow. Noble Canyon stands out with higher rent, stronger cap rate, and A+ neighborhood rating, while Arid Way provides the advantage of newer construction and stable returns.

3. Houston: The Cash Flow Champion

When you think about immediate rental income, Houston is a city that immediately comes to mind. It's a massive metropolitan area with a vast rental market.

  • Prioritizing Cash Flow: Houston is a fantastic choice if your primary goal is generating strong monthly cash flow. While appreciation might not be as explosive as in some other Texas cities, the rental yields can be very attractive.
  • Affordability and Yields: You can often find properties with median prices still around $260,000, and rental yields in some of the developing suburbs can reach a healthy 8-10%.
  • Where to Find Turnkey Gems:
    • Growing Suburbs (Katy, Sugar Land, Cypress, Humble): These areas are expanding rapidly, with modern infrastructure, good schools, and a growing population of families and professionals. They offer high-quality housing options that attract good tenants.

4. El Paso: The Emerging Hidden Gem

El Paso is often flying under the radar, but for investors seeking affordability and solid returns, it's becoming increasingly interesting.

  • Exceptional Affordability: Many areas in El Paso still have median home prices under $200,000, making it one of the most accessible major Texas cities for real estate investment.
  • Solid Returns: You can expect cap rates in the 6-8% range. The demand for rentals is steady, partly due to the presence of the University of Texas at El Paso (UTEP) and a growing healthcare industry, which helps keep vacancy periods short.

Emerging Secondary Markets: For the Savvy Investor

Beyond the major metros, there are some smaller, but potentially very rewarding, markets worth a look, especially if you're seeking higher yields or a specific niche.

  • Killeen-Temple-Fort Hood: This area is heavily influenced by Fort Cavazos (formerly Fort Hood), one of the largest military bases in the world. This means a consistent demand for rentals from military personnel and their families. It's also an area where you can find affordable turnkey properties or even “fix-and-flip” opportunities.
  • Port Arthur: This market is very interesting for its industrial and short-term rental potential. With significant investment in the energy sector, there's a high demand for housing for workers involved in these projects. The projected yield of 14.4% is certainly eye-catching.
  • Lubbock: Known as the “Hub City,” Lubbock has a stable economy primarily driven by Texas Tech University. This provides a constant supply of student renters, which can be a reliable source of income.

Important Investment Considerations for Texas in 2026

Before you jump in, it’s crucial to understand the nuances of investing in Texas.

Property Taxes: A Key Factor

This is perhaps the most important thing to grasp about Texas real estate.

  • No State Income Tax, But High Property Taxes: While you save on state income tax, Texas has some of the highest property taxes in the country. These are essential to factor into your financial projections.
  • Typical Rates: For 2026, expect effective property tax rates in major Texas metros to generally range from 1.8% to 2.5% of a property's assessed value.
  • Recent Tax Relief: A recent voter-approved homestead exemption increase (from $100,000 to $140,000 for school districts) is expected to provide some relief, saving homeowners hundreds of dollars annually. However, remember this mainly benefits primary residences.
  • Tax Breakdown: Understanding that your property tax bill is a combination of levies from the County, City, School District (often the largest), and other special districts is vital.
  • Appraisal Caps: For primary residences, there's a 10% cap on annual appraisal increases, which can help control rising tax costs.

Market Normalization

After the red-hot market of a few years ago, 2026 is shaping up to be more balanced.

  • Slower, Sustainable Growth: We're likely to see a more normalized market with slightly more inventory and slower, but more sustainable, price appreciation, perhaps around 3-4%. This is a good thing for long-term investors.
  • Shifting Dynamics: The “frenzy” has subsided, leading to a more rational investment environment.

Financing Your Investment

  • DSCR Loans: Many out-of-state investors are finding success with Debt Service Coverage Ratio (DSCR) loans. These loans are based on the property's ability to generate enough rental income to cover the mortgage payments, rather than solely on your personal financial situation.

My Take on the Texas Market

From my perspective, Texas continues to be a compelling market for turnkey rental properties. The combination of economic growth, a pro-business environment, and a significant influx of people creates a stable and growing demand for housing. While property taxes are a significant expense to budget for, the overall advantages, particularly the lack of state income tax, can still lead to excellent returns.

When I advise clients or look at opportunities myself, I emphasize due diligence on the specific neighborhood and the turnkey provider. A great turnkey market is only as good as the quality of the properties and the reliability of the management. DFW offers broad appeal, San Antonio is the smart value play, Houston excels in cash flow, and El Paso presents an incredible affordability advantage. Don't overlook the secondary markets if you're looking for something more specialized.

Ultimately, Texas offers a diverse range of opportunities for investors, and by understanding these key markets and considerations, you can make a well-informed decision for your real estate portfolio.

Top Texas Turnkey Markets for Out-of-State Investors

Texas continues to attract out‑of‑state investors in 2026 with affordable turnkey rentals and strong demand. Cities like Houston, Dallas, San Antonio, and Austin offer cash flow potential alongside long‑term appreciation.

Norada Real Estate helps investors secure turnkey properties in Texas markets—providing immediate rental income and scalable wealth opportunities for those investing from outside the state.

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Why Turnkey Real Estate Still Beats Today’s High Mortgage Rate Climate

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The financial news is a chorus of caution. “Mortgage Rates Soar,” “Housing Market Cools,” “Investor Activity Slows.” For many, these headlines are a stop sign, a clear signal to retreat from the real estate market and wait for calmer seas.

The average investor is sitting on the sidelines, paralyzed by uncertainty. But sophisticated investors understand a fundamental truth: market shifts don't eliminate opportunity; they redefine it.

While the casual house-flipper and over-leveraged amateur are forced into hibernation, a unique window opens for those with a clear strategy. A high-interest-rate environment isn't a barrier; it's a filter. It weeds out the competition and rewards those who focus on sound fundamentals and smart systems.

This is precisely the market where the turnkey rental property model doesn't just survive—it thrives. If you're an investor looking for truly passive income without the typical landlord headaches, this guide will explain why the current climate is your signal to lean in, not back away.

Why Turnkey Real Estate Still Beats Today's High Mortgage Rate Climate

“Marry the House, Date the Rate” – The Core Philosophy for 2024 and Beyond

Before we dive into the “how,” we must align on the “why.” The single most important concept to grasp is this: You marry the property, but you only date the interest rate.

  • The Marriage (The Property): When you buy a rental property, you are making a long-term commitment to a tangible asset. The purchase price you negotiate, the quality of the neighborhood, the condition of the home—these are the permanent foundations of your investment. You are acquiring a piece of real estate that provides shelter, generates income, and historically appreciates in value.
  • The Date (The Rate): The interest rate on your loan is a reflection of the economic climate at one specific moment in time. It is a temporary condition. While it certainly impacts your monthly payment today, it is not a life sentence. Economic cycles are inevitable. Rates rise, and eventually, they fall. When they do, you have the power to refinance and lock in a lower payment for the remainder of your “marriage” to the property.

The mistake most people make is fixating on the temporary rate while ignoring the permanent opportunity to acquire a great asset. In today's market, high rates have scared off the competition, giving you more negotiating power on the purchase price.

Your mission is to lock in a permanent discount on the asset price while accepting a temporary increase in financing cost. A 5% discount on a $250,000 property is $12,500 in instant equity. This is a permanent win that can far outweigh the temporary pain of a higher interest payment.

The DIY Dilemma vs. The Turnkey Advantage

So, how do you find and secure these deals? An individual investor faces a steep uphill battle in this market.

The DIY Investor's Challenges

  1. Finding the Deal: You're competing for listings on the MLS or trying to learn the complex art of finding off-market deals (driving for dollars, direct mail, etc.). It's a time-consuming, often fruitless endeavor.
  2. The Renovation Nightmare: You find a distressed property. Now you have to find, vet, and manage contractors—a notorious source of budget overruns, missed deadlines, and immense stress.
  3. Analysis Paralysis: The numbers are tight. How do you accurately project repair costs, property taxes, insurance, and realistic rent? A small miscalculation can turn a promising deal into a monthly financial drain.
  4. The Management Burden: The rehab is finally done. Now you're a landlord. You have to market the property, screen tenants, handle 2 AM maintenance calls, and chase down late rent.

This is where the turnkey model emerges as the elegant solution, a system perfectly engineered to overcome these challenges.

The Turnkey Solution: A System Built for This Market

A true turnkey provider isn't just selling you a house; they are providing a comprehensive investment system that de-risks the entire process.

  • Expert Deal Sourcing: Turnkey companies have professional acquisition teams on the ground in carefully selected markets. They build relationships with wholesalers, agents, and sellers to source properties—often off-market—that meet strict investment criteria. They do the hunting so you don't have to.
  • Standardized, Professional Renovations: We take the guesswork and risk out of the rehab. Our experienced construction teams renovate every property to a specific, high-quality standard designed to attract great tenants and minimize future maintenance. You get a fully updated, rent-ready asset from day one, with no contractor headaches.
  • Predictable, Underwritten Numbers: The biggest fear in a high-rate market is negative cash flow. Our team provides you with a detailed pro-forma financial analysis for every property. We don't use rosy projections. Our numbers are based on real-world data from the hundreds or thousands of properties we already manage in that area, including conservative estimates for:
    • Vacancy (typically 5-8%)
    • Maintenance (5-8%)
    • Capital Expenditures (funds for future big-ticket items like a roof or HVAC, 5-8%)
    • Professional Property Management (8-10%)

    This provides you with the clarity and confidence to make an informed decision, knowing the property is designed to cash flow even with today's higher financing costs.

  • Immediate Cash Flow with In-Place Management: This is the pinnacle of the turnkey advantage. You close on a property that already has a qualified, rent-paying tenant in place. Our vetted property management team is also in place, handling everything from rent collection to maintenance. Your investment is truly passive and generating income from the very first day you own it.

Financial Strategy: Making the Numbers Work for You

With the turnkey system handling the operational heavy lifting, you can focus on the financial strategy.

Step 1: Analyze for Today's Cash Flow

Even with high rates, a well-chosen turnkey property in a strong market can and should produce positive cash flow. It may not be the gusher you'd see with 3% interest rates, but the goal right now isn't to get rich overnight. The goal is to acquire a high-quality asset that pays for itself.

Your tenant's rent covers the mortgage (principal and interest), taxes, insurance, and all professional management and maintenance costs. You might only see $150-$250 in positive cash flow per month. This is not the final prize; this is the proof of concept. That positive buffer is your margin of safety, confirming you have a stable, self-sustaining asset while the real magic happens behind the scenes:

  • Your tenant is paying down your loan, building your equity every month.
  • Your asset is appreciating in a carefully selected growth market.
  • You are positioned for the most powerful step of all…

Step 2: Model the Refinance – The “Cash Flow Catapult”

This is how you visualize the long-term payoff of buying today. Let's run a simple, hypothetical scenario on a $250,000 turnkey property with a 20% down payment ($50,000).

Scenario A: Buying Today

  • Loan Amount: $200,000
  • Interest Rate: 7.5%
  • Principal & Interest (P&I) Payment: $1,398/month
  • Total PITI + Expenses (estimated): $1,950/month
  • Rent: $2,100/month
  • Monthly Cash Flow: +$150

Not bad. The property pays for itself and gives you a small profit. But now, let's look ahead 2-4 years. The market has cycled, and interest rates have dropped. You refinance your remaining loan balance.

Scenario B: The Refinance

  • Remaining Loan Balance (approx.): $192,000
  • New Interest Rate: 5.5%
  • New Principal & Interest (P&I) Payment: $1,090/month
  • Total PITI + Expenses (now with lower P&I): $1,642/month
  • Rent (with modest increases): $2,250/month
  • NEW Monthly Cash Flow: +$608

By simply making one strategic move—a refinance—you have quadrupled your monthly cash flow. You didn't do another renovation. You didn't find a new tenant. You simply optimized the financing on the high-quality asset you had the foresight to acquire when others were afraid. The investors waiting on the sidelines for 5.5% rates will be competing in a frenzy, likely paying $280,000 for the same house you bought for $250,000. You locked in the asset; they are chasing the rate.

Conclusion: The Time for Decisive Action is Now

The current real estate market is a test of vision. It asks investors to look past today's temporary challenges and see the long-term, wealth-building power of owning tangible assets.

Trying to navigate this landscape alone is daunting. It's a full-time job fraught with risk. The turnkey model removes these barriers, offering a streamlined, professional, and predictable path to real estate ownership. It allows you to leverage the expertise of an entire team dedicated to your success.

Don't let high interest rates be your stop sign. Let them be the reason you choose a smarter, more resilient strategy. By investing in a turnkey rental property today, you are not just buying a house. You are:

  • Acquiring a cash-flowing asset in a competitive void.
  • Hedging against inflation as your rent and property value rise.
  • Building equity with every rent check your tenant pays.
  • Positioning yourself for a massive cash flow increase with a future refinance.

Fortune favors the bold—and the prepared. While others wait for the perfect conditions that may never arrive, you can take decisive action. The opportunities are real, the system is proven, and the time to build your portfolio is now.

Cash Flow That Outlasts High Interest Rates

Even in a high‑rate market, turnkey rentals continue to deliver steady income. Investors in 2026 are turning to real estate for reliable cash flow and appreciation when borrowing costs remain elevated.

Norada Real Estate helps you secure turnkey properties designed for immediate ROI and long‑term wealth—so your portfolio grows stronger regardless of interest rate trends.

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Today’s Mortgage Rates, Feb 3: Rates Below 6% Are Opening a Window for Buyers

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For anyone keeping an eye on the housing market, the news today, February 3rd, is pretty good: mortgage rates are holding steady below the significant 6% mark. This is a welcome sign for many, as the average 30-year fixed mortgage rate is currently sitting at 5.97%, according to Zillow. It’s been a bit of a rollercoaster lately, but this period of relative calm suggests we might be in a sweet spot for making those big homeownership dreams a reality or for saving money by refinancing.

The 15-year fixed mortgage rate is also holding its ground, coming in at 5.47%. This shorter-term loan is fantastic for those looking to pay off their homes faster and save a good chunk of change on interest over time. While nobody has a crystal ball, this consistency offers a valuable chance to lock in a great rate before things potentially shift again.

Today's Mortgage Rates, Feb 3: Rates Below 6% Are Opening a Window for Buyers

Let's see what the numbers look like across some of the most common loan types:

Loan Type Current Rate (as of Feb 3)
30-year fixed 5.97%
20-year fixed 5.90%
15-year fixed 5.47%
5/1 ARM 5.95%
7/1 ARM 5.82%
30-year VA 5.54%
15-year VA 5.21%
5/1 VA 5.09%

(Data sourced from Zillow)

What These Numbers Mean for You

The Dependable 30-Year Fixed: Still Under 6%

This is the go-to for so many people, and for good reason. A 30-year fixed rate at 5.97% gives you that peace of mind with predictable monthly payments for decades. The fact that it's stayed below 6% for a couple of weeks now is a big deal. We’ve seen borrowers jump on even the smallest dips in rates recently, so this sustained period is a clear signal that it's a good time to act.

The Smart 20-Year Fixed: A Good Balance

If you're looking for a middle ground, the 20-year fixed rate at 5.90% is worth considering. It lets you pay off your mortgage a bit faster than a 30-year loan and save on interest, without making your monthly payments jump too high like a 15-year loan might. It’s a solid choice for many who want a bit more flexibility.

The Speedy 15-Year Fixed: Best for Savings

For those who can manage the higher monthly payments, the 15-year fixed rate at 5.47% is incredibly attractive. You'll build equity in your home much quicker, and the amount of interest you pay over the life of the loan will be significantly less. This is a fantastic option if your budget allows for it.

Adjustable-Rate Mortgages (ARMs): A Touch of Caution

  • 5/1 ARM: 5.95%
  • 7/1 ARM: 5.82%

While ARMs often start with lower rates, they come with the risk that your interest rate could go up after the initial fixed period. Right now, with fixed rates holding so nicely under 6%, the appeal of ARMs isn’t quite as strong for many borrowers. You have to weigh the potential savings now against the risk of higher payments later.

What's Making the Rates Behave This Way?

It’s always good to understand what’s influencing these numbers, so you can better predict what might happen next.

The Federal Reserve's Pause

The Federal Reserve decided to keep its key interest rate where it is, in the range of 3.5% to 3.75%. They also noted that the economy is growing “solidly” rather than just “moderately.” This suggests they are likely to keep things steady for a while, which is generally good for mortgage rates. They aren't in a hurry to raise rates, and they aren't rushing to cut them either, which means more stability.

Treasury Yields are Key

Mortgage rates don’t just move on their own; they are closely tied to what’s happening with the 10-year Treasury yield. This is like the benchmark interest rate for longer-term borrowing in the U.S. The 10-year yield recently opened around 4.24%. What lenders and borrowers are watching for is the “spread” – the difference – between this Treasury yield and the mortgage rates consumers get. If that spread narrows, it can mean even better mortgage rates for us.

The Economic Forecast Matters

Things happening around the world and right here at home can shake up these rates. Geopolitical events can create uncertainty, which often leads to people seeking out safer investments, sometimes pushing Treasury yields down. Also, closely watched economic reports, like the upcoming Employment Situation Summary due early this month, will give us a clearer picture of the job market. Strong jobs numbers can sometimes lead to higher rates, while weaker numbers might lead to lower ones.

My Take on the Market Right Now

Honestly, I'm feeling pretty optimistic for borrowers. We've seen rates climb quite a bit over the past couple of years, and it felt like there was no end in sight. Now, seeing the 30-year fixed rate consistently below 6% feels like a breath of fresh air. It's not the super-low rates we saw during the pandemic, but it's certainly a far cry from the peak rates of last year.

This stability is what many people need. Whether you're a first-time buyer navigating the complexities of affordability or a homeowner looking to leverage a refi for some financial breathing room, having rates hover in this range is genuinely helpful. It gives you more certainty when you’re planning your budget and making those crucial decisions.

I’ve been in this business long enough to know that rates can change quickly. What we’re seeing today is a valuable window. It's a chance to take advantage of relatively favorable borrowing costs before inflation pressures potentially push rates back up, or before the Fed makes any unexpected moves.

Wrapping It Up: Seize the Opportunity

So, to recap, today's mortgage rates are holding strong below 6%, with the popular 30-year fixed at 5.97% and the cost-saving 15-year fixed at 5.47%. While there was a slight bump today, the overall trend is encouraging.

If you've been on the fence about buying a home or refinancing your current mortgage, I truly believe this is the moment to seriously consider it. Lock in a rate you're comfortable with and get those important financial steps taken care of. Waiting could mean facing higher borrowing costs down the line.

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Build Passive Income & Wealth with Turnkey Rentals in 2026

Mortgage rates remain high in 2026, but rental properties continue to deliver strong cash flow and appreciation. Savvy investors know that turnkey real estate is the path to passive income and long‑term wealth.

Norada Real Estate helps you secure turnkey rental properties designed for immediate cash flow and appreciation—so you can invest smartly regardless of interest rate trends.

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Mortgage Rates Today, Feb 3, 2026: 30-Year Refinance Rate Rises by 3 Basis Points

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Today, on February 3, 2026, mortgage rates saw a slight uptick, with the 30-year fixed refinance rate inching up by 3 basis points. While this change is incremental, it still signals a market that borrowers and lenders are watching very closely for even the smallest shifts, as the national average for the 30-year fixed refinance rate now sits at 6.61%.

Mortgage Rates Today, Feb 3, 2026: 30-Year Refinance Rate Rises by 3 Basis Points

Current Refinance Rates You Need to Know

It’s always best to have the most up-to-date information when you're thinking about your mortgage. According to Zillow's latest survey, here's where things stand today, February 3, 2026:

  • 30-year fixed refinance rate: 6.61% (This is a slight increase of 3 basis points from last week's average of 6.58%).
  • 15-year fixed refinance rate: 5.67% (This rate has remained steady).
  • 5-year adjustable-rate mortgage (ARM) refinance rate: 7.07% (This rate has also held firm).

For many homeowners, the 30-year fixed rate is the gold standard, and even a small adjustment like this can make people pause and consider their options.

Understanding the Market Context

I’ve been following the mortgage market for a while now, and what I’m seeing today is a picture of relative stability with a touch of upward pressure. The 30-year fixed refinance rate at 6.61% is a modest bump, but it highlights just how delicate the balance is in the current market. We’re still a long way from the peak rates we saw in prior years, but borrowers are definitely paying attention to every tiny movement.

Why are borrowers so sensitive? I’ve spoken with many economists recently, and they’ve pointed out that refinance demand is “hyper-sensitive” to rate changes. You’ll recall that when rates dipped below 6% earlier in January, there was a massive surge in refinance applications. Now, with this recent small uptick, we're seeing that enthusiasm temper a bit. It’s a clear sign that homeowners are actively seeking the best possible deals, and every fraction of a percent counts.

Comparing Your Refinance Options

When you’re thinking about refinancing, it’s not just about one rate. Different loan types suit different needs. Here's a quick rundown:

  • 15-year fixed refinance loans: These continue to be a very attractive option for homeowners who want to build equity faster and save money on interest over the life of the loan. However, the trade-off is typically a higher monthly payment, which can be a hurdle for some budgets.
  • Adjustable-Rate Mortgages (ARMs): The 5-year ARM, currently at 7.07%, isn't as appealing in today's environment. With higher starting rates and the possibility of future rate increases, many borrowers are hesitant, especially when compared to the predictability of fixed rates.
  • VA Refinance Products: While not listed in today’s Zillow update, it’s worth remembering that VA refinance loans are often competitive and can offer even lower rates than conventional loans for eligible veterans and service members. These are always worth exploring.

What This Means for Your Refinance Goals

So, what does this slight increase in the 30-year fixed rate mean for you, the homeowner? In the immediate short term, it might make some individuals think twice before jumping into a refinance. However, I want to emphasize that overall rates are still very favorable when you look back at the peaks we experienced just a couple of years ago.

My professional opinion is that homeowners who currently have mortgages with rates above 6.5% or even 7% still have a compelling reason to consider refinancing. Locking in a fixed rate near the current averages can lead to significant savings, both monthly and over the entire loan term. The key is to act when you see favorable conditions, and while today’s rates have inched up, they remain historically attractive for those looking to lower their current payments or cash out equity.

Dive Deeper: Refinance Market Trends & What's Happening Behind the Scenes

Beyond the daily rate movements, there's a lot going on that influences where mortgage rates are headed. As of early February 2026, refinance rates are still hovering near three-year lows. The national average for a 30-year fixed refinance is fluctuating, generally between 6.08% and 6.63%, depending on which lender you look at.

Even though the Federal Reserve decided to pause interest rate cuts at their meeting on January 28th, the administration is actively trying to “unfreeze” the housing market. They are encouraging Fannie Mae and Freddie Mac to purchase billions in mortgage bonds. This is a big deal because it puts downward pressure on mortgage rates, helping to keep them lower than they might otherwise be.

A Surge in Activity: It's no surprise that refinance activity has seen a massive jump in early 2026. The Mortgage Bankers Association (MBA) Refinance Index is up a staggering 156% compared to this time last year! A lot of this surge is fueled by homeowners who took out loans with rates above 7% back in 2024 and 2025. They are clearly looking for immediate relief from those higher payments.

Fed's Pause vs. Government Intervention: While the Fed hitting the pause button on rate cuts might sound like it would send rates soaring, the new administrative policies aimed at improving the liquidity of mortgage-backed securities have been instrumental in reducing the spreads. This means rates are staying lower than you might expect, given the Fed's decision.

The “Lock-in Effect” is Softening: We’ve talked a lot about the “lock-in effect” – that feeling many homeowners had of being stuck with their low pandemic-era rates (below 5%) and therefore unwilling to move or refinance. However, the current environment, with rates dipping below 6%, is finally starting to motivate those homeowners who were previously locked in by the higher rates of 2023 and 2024. They are now seeing opportunities to improve their financial situation.

The Rise of Digital Refinancing: This is a trend I'm particularly excited about from a convenience standpoint. Over 86% of borrowers now prefer to apply for mortgages online! Lenders are responding by developing digital tools that are reportedly not only reducing closing costs but also speeding up the entire loan origination process. Some are even getting loans closed in as little as 45 days, which is incredible efficiency.

Looking Ahead: 2026 Mortgage Rate Forecast

So, what do the experts predict for the rest of 2026? The general consensus is that rates will remain relatively stable, but there's a strong possibility they could drift lower as the year progresses.

Here's what some key institutions are forecasting:

  • Fannie Mae: They anticipate rates will stay close to 6% for most of 2026, with a potential dip to around 5.9% by the fourth quarter.
  • Bankrate: Their forecast suggests the 30-year fixed rate could fall as low as 5.5% if a recession occurs. However, they expect the average for the year to be closer to 6.1%.
  • Morgan Stanley: Strategists are looking at a potential decline to 5.50%–5.75% by mid-2026, followed by a slight increase in the latter half of the year.

This outlook suggests that while we might see some minor fluctuations, the overall trend points towards continued affordability for homeowners looking to refinance. My advice? Keep an eye on the market, stay informed, and be ready to act when the timing is right for your personal financial situation.

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30-Year Fixed Mortgage Rate Drops Steeply by 85 Basis Points

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This is big news for anyone dreaming of owning a home or looking to refinance: the 30-year fixed mortgage rate has dropped a significant 85 basis points compared to this time last year. What does this actually mean for your wallet and your plans? It means that buying a home is now more affordable, and many homeowners can potentially save a considerable amount of money by refinancing their existing mortgage.

30-Year Fixed Mortgage Rate Drops Steeply by 85 Basis Points

When mortgage rates fall by this much, it's not just a small nudge; it's a clear signal that the cost of borrowing money for a home has become substantially more attractive. This is the kind of financial breathing room that can make the difference between staying a renter and becoming a homeowner, or between feeling financially stretched and gaining some much-needed breathing room.

The latest data from Freddie Mac, a trusted source for mortgage market information, shows us some eye-opening figures. As of January 29, 2026, the average 30-year fixed-rate mortgage is sitting at 6.10%. While this is a tiny fraction higher than last week's 6.09%, the real story unfolds when we look back a full year. A year ago, that same 30-year fixed-rate mortgage was averaging a higher 6.95%. That difference, that 85 basis point drop, is what we need to focus on.

What Does an 85 Basis Point Drop Really Mean?

Let's break down what “85 basis points” translates to in real dollars. A basis point is simply one-hundredth of a percentage point. So, 85 basis points is equal to 0.85%. When you see that 0.85% shaved off your interest rate over 30 years, the savings can be quite dramatic.

Imagine you're taking out a $300,000 mortgage.

  • At 6.95% (last year's rate): Your estimated monthly principal and interest payment would be roughly $1,992.
  • At 6.10% (this year's rate): Your estimated monthly principal and interest payment drops to around $1,825.

That's a monthly saving of about $167! Over the life of a 30-year loan, that adds up to nearly $60,000! This isn't just a theoretical calculation; it's actual money that could go towards other financial goals, home improvements, or simply provide valuable peace of mind.

Why the Rate Drop? A Look Under the Hood

It's natural to wonder why rates have moved this way. The Federal Reserve plays a significant role here. After a period of raising interest rates to combat inflation, the Fed has begun to ease up. They've held benchmark rates steady after several cuts in 2025, signaling a move towards a more stable economic environment. Mortgage rates, while not directly set by the Fed, tend to follow the general direction of interest rates, particularly the yield on the 10-year Treasury note.

My own observations suggest that this stability and slight decrease at the low-6% range are a direct result of this shift in monetary policy. It's a welcome sign after a period of uncertainty.

Impact on Homebuyers and Homeowners

This steep drop in mortgage rates is a boon for a couple of key groups:

  • Prospective Homebuyers: For those who have been on the fence, waiting for more favorable borrowing costs, this is the signal they've been looking for. The lower rates make monthly payments more manageable, potentially allowing buyers to afford a slightly more expensive home or simply have more disposable income each month. This has led to a steady increase in purchase applications compared to the previous year.
  • Current Homeowners Looking to Refinance: If you have a mortgage with an interest rate significantly higher than 6.10%, especially one from a year or two ago, now is an excellent time to explore refinancing. Pulling that rate down can lower your monthly payments, reduce the total interest paid over the life of the loan, or even allow you to shorten your loan term. We're seeing a corresponding rise in refinance applications, which isn't surprising given the financial incentives.

What the Data Tells Us

Let's look at some of the specifics from the Primary Mortgage Market Survey® by Freddie Mac:

Mortgage Type Average Rate (01/29/2026) 1-Week Change 1-Year Change 52-Week Average 52-Week Range
30-Yr Fixed FRM 6.10% +0.01% -0.85% 6.52% 6.06% – 6.89%
15-Yr Fixed FRM 5.49% +0.05% -0.63% 5.72% 5.38% – 6.09%

Note: FRM stands for Fixed-Rate Mortgage.

It's interesting to see that the 15-year fixed mortgage also saw a drop year-over-year, albeit not as dramatic as the 30-year. This offers another attractive option for those looking to pay off their homes faster and save on total interest.

Key Takeaways from My Perspective

From my standpoint as someone who follows these trends closely, here are the crucial insights:

  • Rate Stability is Key: Rates have found a comfortable footing in the low-6% range. This stability is encouraging, as it provides predictability for financial planning. It's important to remember that these rates are near their lowest points since late 2022.
  • Affordability is Improving, but Challenges Remain: While the lower rates are a huge help, it's true that borrowing costs are still higher than they were a few years ago. Even with strong income growth for many, affordability remains a concern for some potential buyers, and this can sometimes keep new home listings from hitting the market.
  • The Spring Market Outlook: Economists are forecasting that mortgage rates will likely hover between 6% and 6.5% for the near future. This suggests that the upcoming spring housing market could be more active and robust than last year. However, it's not expected to be a complete boom, meaning it won't just be a free-for-all. It’s more likely to be a healthy, steady market.

The current environment, with a 30-year fixed mortgage rate dropping by an impressive 85 basis points year-over-year, presents a genuine opportunity. Whether you're looking to buy your first home or optimize your current mortgage, now is the time to explore what this positive shift could mean for your financial future.

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Will the Las Vegas Housing Market Crash or Cool Off in 2026?

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Looking into early 2026, the Las Vegas housing market is showing signs of stabilization rather than an outright crash. While we've seen a surprising dip in median home prices in December, this appears to be a seasonal adjustment following a record-breaking November, coupled with a strategic increase in sales volume. My opinion, based on current trends, suggests we're heading for a more balanced market, not a collapse of prices.

The chatter about a potential housing market crash in Las Vegas for 2026 is understandable. After all, we've seen some wild swings. But as someone who's been deeply involved in Southern Nevada real estate, I can tell you that the situation is far more nuanced than a simple “crash or boom” narrative. Let's pull back the curtain and look at what the numbers are actually telling us as we move into 2026.

Will the Las Vegas Housing Market Crash or Cool Off in 2026?

Decoding the December Surprise: Why Prices Dropped (and Home Sales Rose)

The biggest headline from late 2025 was the unexpected drop in the median home price for single-family homes. It fell to $470,000 in December, down from a record high of $488,995 in November. That's a decrease of roughly $18,995. My initial thought? “Okay, this seems sharp, but let's see the whole picture.”

And the whole picture is fascinating! Despite the price dip, home sales actually increased. In December, 1,802 single-family homes sold, which is a healthy 17.2% jump from November. Compared to the prior year, sales were down a tiny bit (.5%), but when you look back at December 2023, we saw a significant increase (17.7%). This surge in sales volume, even with a slight price reduction, often indicates a market that's becoming more accessible to buyers.

From my perspective, this isn't a sign of weakness, but rather a healthy recalibration. Think of it like this: after a rapid climb, the market took a brief, controlled breath. Sellers might have adjusted prices slightly to ensure sales before the typically slower winter months, while buyers, perhaps sensing an opportunity, stepped in.

A Look Back: How 2025 Stacked Up

To understand where we're going, it's crucial to see where we've been. 2025 was a year of significant activity, but also one of lower overall sales volume compared to the heated years of 2020 and 2021. Approximately 28,498 existing homes sold in the Las Vegas Valley in 2025. This is a nearly 9% decrease from the 31,305 homes sold in 2024. Frankly, this is the lowest annual sales number we've seen since 2007, right before the Great Recession hit. It’s a stark reminder of how much the market has changed.

Table: Las Vegas Home Sales Volume (December)

Year Single-Family Homes Sold Year-over-Year Change
2025 1,802 -0.5%
2024 1,811 +17.7%
2023 1,518 -0.3%
2022 1,534 -51.4%
2021 3,178 -3.8%
2020 3,305 N/A

This drop in the number of homes sold isn't necessarily a bad thing for the market's health. It suggests we're moving away from the frenzy of an unsustainable boom and towards a more normalized pace of transactions.

Median Prices: A Deeper Dive

Let’s talk about those median prices. For previously owned single-family homes:

  • December 2025: $470,000 (down 3.9% from November, down 1.1% from prior year)
  • December 2024: $475,000
  • December 2023: $449,900
  • December 2022: $425,000
  • December 2021: $425,000
  • December 2020: $345,000

And for condos and townhomes:

  • December 2025: $275,000 (down 9.5% from November, down 5.2% from prior year)
  • December 2024: $290,000
  • December 2023: $270,000
  • December 2022: $246,940
  • December 2021: $242,000
  • December 2020: $186,000

The all-time high median sale price for single-family homes was set in November 2025 at $488,995. For condos and townhomes, the highest point was reached in October 2024 at $315,000. The December 2025 price of $275,000 represents a significant drop from that peak.

What does this tell me? The condo and townhome market experienced a more pronounced correction from its peak. This often happens as these segments can be more sensitive to broader economic shifts and interest rate changes. However, the single-family home market, while seeing a modest dip from its November peak, still holds value considerably higher than in previous years. The year-over-year decline of just 1.1% for single-family homes suggests resilience.

The Luxury Market: Still Shining Bright

It's important to note that not all segments of the Las Vegas market are behaving the same way. The luxury market (homes $1 million and over) is actually showing robust growth. In December, 147 luxury homes sold, an increase from 125 in November. The median sales price in this segment rose to $1,449,950 in December, up from $1,350,950 in November.

Las Vegas luxury homes have seen impressive appreciation, ranking fourth nationally for price increases since 2015. The median price for a luxury home here is now around $1.57 million, a remarkable 161% increase since 2015. This indicates a strong demand and continued investment in higher-end properties, which often acts as an economic buffer.

Inventory and Days on Market: Signs of Balance

A key indicator of market health is the supply of homes. We saw 1,889 new listings in December, down 13.5% from November but up 7.7% from the previous year. This suggests a more controlled inflow of properties, preventing an oversupply.

Crucially, the number of single-family houses sitting on the market without offers decreased to 6,396 in December from 7,033 in November. This is a 9.1% drop month-over-month, and while it's up 28.8% from the prior year (meaning more homes are available compared to Dec 2024), the decreasing trend from November to December is positive.

The inventory of homes on the market is currently 3.5 months. This is down significantly from 4.6 months in November but up from 2.5 months in December 2023. For context, 3-6 months of inventory is generally considered a balanced market. While we're currently at the lower end of that range, it's a far cry from the extreme seller's markets of recent years (like the 0.7 months of supply in December 2021).

Furthermore, homes selling quickly is a good sign. In December, 45.4% of closings were on homes that had been on the market for 30 days or less. While this is slightly less than November and the previous December, it still points to a market where desirable homes are moving.

Why Now Might Be a Great Time to Buy

Based on these trends, I believe 2026 presents a compelling opportunity for buyers, especially before the typical spring market surge. With this recent price adjustment and the increase in sales volume indicating buyer engagement, you might find yourself in a stronger negotiating position. We're seeing buyers successfully score price reductions and seller-paid closing costs, which was almost unheard of during the peak frenzy.

The market isn't crashing, but it is becoming more sensible. For those who have been waiting on the sidelines, this period of stabilization could be your window to enter the market without paying peak-season premiums.

What to Watch For in 2026

Will median prices continue to decline? It’s possible we'll see further modest adjustments, especially as we move through the winter. However, I don't anticipate a systemic crash. Several factors will influence the market:

  • Interest Rates: While they've been a significant driver, any stabilization or slight decrease in interest rates would be a major boost.
  • Economic Conditions: Las Vegas's economy is tied to tourism and hospitality, but also diversifying. Continued job growth is key.
  • New Construction: The pace and pricing of new builds also affect the resale market.
  • Affordability: As long as home prices remain relatively affordable compared to other major metros, Las Vegas will continue to attract buyers.

Distressed Properties: Not Signalling a Crisis Yet

It's always important to monitor distressed properties. In December, we saw 27 REO (Real Estate Owned) properties, 37 short sales, and 26 foreclosure commences, totaling 90 distressed properties. While this number is up from historical lows, it is still a very small fraction of the overall market activity and doesn't point towards a widespread wave of foreclosures that would trigger a market crash. This is good news; it suggests that homeowners are generally managing their finances and not facing widespread financial distress.

The Verdict: Stabilization, Not a Crash

To directly answer the question: No, the Las Vegas housing market is not projected to crash in 2026. Instead, I see a market that is transitioning into a more balanced and sustainable phase. The price corrections we’re observing are more akin to a healthy correction after rapid appreciation, supported by an increase in buyer activity and a more manageable inventory. This is a market that is maturing, offering opportunities for both buyers and sellers who understand its evolving dynamics.

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