In this edition, we cover the latest economic trends and how the Trump effect is influencing market outlooks. You’ll find valuable investor insights, current rate updates, and a spotlight on the strong recovery in commercial real estate lending.

The idea that a majority of investors plan to buy at least as much real estate in 2025 as they did in 2024 is interesting because the main reason deals didn’t work last year was pricing and deal-level economics, according to Dillon Freeman, CFA, senior commercial loan officer at Fidelity Bancorp Funding.

“Lending spreads have come in, but I am not sure they will be enough to result in meaningful increases in volume, all else equal,” he told Commercial Property Executive.

Freeman said this would suggest that investors expect sellers to capitulate, or there will be more of the same for 2025. Interestingly, the five-year U.S. Treasury stands today exactly where it did a year ago. “Despite rising cap rates, many people would agree that we have not yet seen a new mark-to-market for commercial real estate assets across the board due to the depressed transaction volume we have seen since 2023.”

We’re thrilled to highlight a few recent closings that reflect our dedication to fast, smart, and smooth financing solutions for both commercial and residential properties. Take a look at some of the newest successes from the Fidelity team:

In this edition, we cover the latest economic trends and how the Trump effect is influencing market outlooks. You’ll find valuable investor insights, current rate updates, and a spotlight on the strong recovery in commercial real estate lending.

Looking for expert insights on interest rates, inflation, real estate, and the economy? Don’t miss our latest webinar featuring John Silvia, former Chief Economist of Wells Fargo, as he breaks down what’s really happening in the market and how it impacts investors, homebuyers, and businesses. Key topics:

• Will the Fed actually cut rates in 2025?

• The truth about inflation—are we being misled?

• Housing market trends: Is now a good time to buy or build?

• Tariffs, trade wars, and how China still holds the biggest risk.

• How immigration policies could reshape labor and real estate.

• What commercial real estate investors need to watch out for.

We’re excited to share some recent closings that showcase our commitment to speed, strategy, and seamless execution in financing commercial and residential properties. Check out a few of the latest Fidelity fundings.

Dillon Freeman, Fidelity Bancorp Funding Senior Commercial Loan Officer, told CPE the latest Federal Reserve cutting cycle has produced a positive yield curve, presenting an attractive opportunity for banks to revisit deploying longer-term loans.

“The attractiveness of lending collateral to the Fed via reverse repo transactions has fallen relative to the yield earned on new loans,” he said. “Banks have seen a fall in non-interest income as loan originations have subdued. The need for income added to a widening spread between cap rates and lending costs could see banks re-entering the market after limited activity over the last 18 months to 24 months.”

With the new year under way, we’re excited to keep you informed with the latest loan rates, expert insights, and recent funding highlights. Dive in to see what’s new!

These success stories showcase our commitment to timely, flexible, and competitive financing solutions. Whether you’re seeking a bridge loan for a quick acquisition or a long-term refinance to fuel portfolio growth, Fidelity Bancorp Funding delivers the expertise and tailored strategies needed to succeed.

Debt Service Coverage Ratio (DSCR) loans have emerged as one of the hottest financing options for commercial real estate investors. Offering flexibility, ease, and speed, DSCR loans enable borrowers to qualify for financing based on a property's cash flow instead of personal income.

As we embrace the spirit of the holiday season, we at Fidelity Bancorp Funding want to take a moment to express our heartfelt gratitude for your trust and partnership throughout the year. Your support motivates us to deliver solutions in commercial real estate, California housing markets, and mortgage lending with some new insights below.

These success stories showcase our commitment to timely, flexible, and competitive financing solutions. Whether you’re seeking a bridge loan for a quick acquisition or a long-term refinance to fuel portfolio growth, Fidelity Bancorp Funding delivers the expertise and tailored strategies needed to succeed.

We are thrilled to share our flagship product, the FBF Small Balance Bridge Loan. Funded directly from Fidelity Bancorp Funding’s proprietary fund, we ensure speed and certainty—key advantages in today’s market. Our competitive rates, flexible lending terms, and guaranteed broker protection set us apart, making us the trusted choice for bridge financing.

As we move through another month, we’re excited to bring you timely updates, expert insights, and the latest loan rates to support your financial decisions. Take a look inside to see our popular articles and recent funding highlights!

In this article, I cover how private real estate investors can navigate the complex lending environment to secure commercial real estate loans more effectively. You’ll learn strategies to position yourself as an ideal borrower, including the importance of preparation, transparency, and building strong banking relationships. The article also highlights the value of working with mortgage brokers and explores alternative financing options like bridge loans. Whether you’re seeking to streamline the process or secure better terms, this guide offers practical insights for success.

From a $7.8 million bridge loan for a stunning Park City ski house to $5 million in permanent financing for a multifamily project in Garden Grove, this month showcases the broad range of loan products and properties that Fidelity Bancorp Funding supports.

Over the past year, I’ve highlighted that lowering the federal funds rate won’t necessarily lead to a drop in mortgage rates. With the Fed rate lower, we’re seeing daily headlines asking: “Why aren’t mortgage rates following?”

We are excited to introduce our enhanced portfolio of direct commercial loan products. From small to large balance transactions and bridge financing to permanent loans, Fidelity Bancorp Funding now offers a direct product for all of your commercial lending needs. Please explore our competitive and flexible financing options and we look forward to being your one-stop direct lending solution.

With Proposition 33 on the November 2024 ballot, property owners and investors could face a significant shift in the rental housing market. The potential repeal of the Costa-Hawkins Rental Housing Act, a law that has protected certain properties from rent control for decades, poses substantial risks. While rent control may appear to address rising housing costs, it creates unintended consequences for both renters and real estate investors.

As California prepares to vote, it is crucial for renters and property owners alike to understand the far-reaching impacts of rent control and to consider steps to safeguard their interests.