CoreVest CEO Fred Matera On What the Fed’s Rate Cut Means for Real Estate Investors — And Why It’s Different This Time

The Federal Reserve cut rates this week for the first time in over a year — a move that signals a meaningful shift in the macro environment. For real estate investors, especially those focused on rental properties, this change carries significant implications. So how should borrowers and investors be thinking about the landscape? And what does this mean for our CoreVest products? We sat down with CoreVest CEO, Fred Matera, to get his thoughts on how to think about the latest policy developments from the Federal Reserve.
 

Q: How should borrowers (rental property investors) think about the landscape now that the Fed has cut rates for the first time in a year?

A: The policy pivot is real – and it’s investor friendly
This latest rate cut isn’t just a response to inflation metrics — it reflects a broader strategy. With labor market weakness emerging (highlighted by a downward revision of nearly one million jobs from previous government estimates), the Fed has pivoted toward supporting growth. And with an Administration that understands the real estate market deeply, we believe there’s a clear intent to reinvigorate housing and remove some of the regulatory friction that’s held the sector back. The Administration appears set on running the economy hot — easing rates, loosening regulatory pressure, and providing tailwinds for business.

For investors, the environment is quickly becoming more favorable. When interest rates sit at or below inflation — what economists call negative real rates — the cost of capital becomes historically low. That’s a strong tailwind for asset values, particularly in real estate.

Q: What’s different this time relative to the last time the Fed cut rates?

A: It’s more proactive and strategic
Unlike prior cycles where rate cuts were about cushioning a downturn or reacting to a crisis, this move feels preemptive and strategic. Real estate — especially single-family housing — has been in a deep freeze in many markets. Home prices have been falling in many parts of the country, and this shift in policy is designed to reverse that trend through rate-driven affordability and improving sentiment. The result? More transactions, more investor engagement, and more financing opportunities.

We believe that rates have further to fall, particularly for shorter maturity obligations (a continued steepening of the yield curve). But regardless, what is most important now is the improvement in market psychology and sentiment that lower real interest rates drive.  A shift in market confidence leads to a pickup in activity — and that’s exactly what we’re beginning to see.

Q: What does this mean for CoreVest products?

A: CoreVest products are well-positioned
In this environment, nearly all of CoreVest’s lending products gain tailwinds:

• Fix-and-flip and bridge loans are benefiting from improved short-term rate dynamics
• Lease-up Lines are helping borrowers refinance more expensive construction loans as they lease up units
• Term Loans will benefit greatly here as borrowers can lock in long-term rates at favorable levels on stabilized properties
• Ground-up construction and build-for-rent projects are seeing better economics with lower financing costs.

Deals that had been shelved earlier this year are back in play. The shift in market conditions is already translating into real activity — and we’re ready to help investors capitalize on the opportunities ahead.

Q: And what is the outlook for rentals?

A: Bullish. Rental housing stands to benefit.
With affordability remaining a key challenge for many would-be buyers, one area of the market that stands to benefit the most is rental housing. Consider that in the last 12 months, of the 1.3 million new households formed, over 70% or just under a million of those became renters. Renters currently represent close to 40% of all households and that number could rapidly approach 50% over the next decade.

Rents have historically kept pace with, or exceeded, inflation — and borrowing below inflation to earn inflation-protected income is one of the purest forms of value creation. We expect the purpose-built rental market to expand rapidly, and CoreVest is positioned to support that growth.

At CoreVest, we view this new environment as a rare window of opportunity — one where smart capital and experienced investors can scale with confidence. If you’ve been waiting for the right time to move forward, the landscape may have just changed in your favor.