Anyone who buys or sells real estate wants to know when the Fed will cut rates. Here we are – July 2025, and the average 30-year mortgage rate is still near 7%. People who buy homes to live in want to know when rates will go down. So do San Antonio investment property investors! If you buy San Antonio distressed properties, lower rates will help you, too.
Here’s where things stand on the Fed and interest rate as of late July 2025:
- – The Federal Reserve has kept the federal funds rate between 4.25% and 4.50% since December 2024. This was after three rate cuts at the end of 2024.
- – The Fed has decided to put off rate cuts at all of its 2025 meetings to date – January, March, May, and June. They are still taking a cautious approach to inflation being above the 2% target. The Fed also cites economic uncertainties stemming from tariffs and monetary policy changes.
- – The Fed’s current economic estimates from June 2025 say they may cut rates twice (25 basis points each time) by the end of 2025. If this happens, the federal funds rate will be between 3.75% and 4.00% by the end of the year.
- – It is believed there is a higher chance of rate cuts beginning in September 2025, or even October or December. When the cuts happen depends on inflation data and unemployment trends.
- – Some analysts have advocated for a rate cut as early as the end of July because of slow GDP growth and inflation almost hitting targets. But this is far from a consensus.
What about mortgage rates? Even with rate cuts in 2024, 30-year fixed mortgages are still hitting 7% and even higher. Mortgage analysts expect rates to stay high, in the 6.5% to 7% range through the end of the year.
Freddie Mac says 30-year fixed mortgages will be at 6.62% by the end of 2025, and just above 6% by the end of 2026. Fannie Mae says rates will be 6.5% by the end of 2025 and 6.1% by the end of 2026.
Waiting for lower interest rates is probably risky because higher demand for homesteads and San Antonio distressed properties could increase prices. We still have persistent inflation and a high national debt, so it looks like high rates will be with us for a while longer!
Regardless of the rate cuts, we still have some outstanding San Antonio under market value deals!
524 Avenue B Seguin TX 78155, large lot: .197 acres
San Antonio distressed property investors, we have this great Seguin investment property! 2 beds 1 bath, estimated square feet 724, great location, proximity to Texas Lutheran University. The town is experiencing a significant economic and population boom, driven by factors like increased industrial investment, a growing retail sector, and a surge in housing development.
The city is actively attracting new businesses and residents, leading to a positive outlook for its future. Seguin’s location along the SH 130 corridor is attracting significant traffic and development. The city is part of the broader Austin-San Antonio Mega Region, where it ranks third in growth. This Seguin investment property will look great in your portfolio!
Price tag: 65K, estimated ARV 149K plus.
Exit Strategy: Minor rehab 20-25K, make sure plumbing, electrical, and roof are in working order, paint interior/exterior.
Alternatively, sell with owner financing at $ 129,000 with a 10% down payment. Then, you can sell the note or refinance to access your cash.
Contact us with the form below. Or call Joseph Pickett today at (210) 421-7533, email jmpickett@gmail.com for more information!