2025 Market Trends and Wealth-Building Secrets You Need to Know

Welcome to KPA Wealth Weekly, your source for the latest in financial and mortgage markets. Each week, we share economic updates, rate trends, and tips to build a strong financial foundation.

Let’s dive into this week’s highlights!

• Mortgage Interest Rates

• Stock Market Update and Trends

• Financial Numbers This Week

• Real Estate: Buy or Sell?

• This Week’s Wealth Strategy

Mortgage Interest Rates

Stock Market Update and Trends

It’s official: the S&P 500 is at an all-time high, tech is bullish, and we’re in a Donald Trump-era market. Whether the market moves up or down, one thing is certain—volatility. While volatility may sound negative, it’s actually an opportunity to build wealth. Think back to the GameStop short squeeze in 2021 or the COVID market crash of 2020; both were volatile events that created chances for consumers to profit.

Key Takeaway: The faster the market pumps, the sooner it’s likely to dump. Stay diversified, focus on long-term growth, and be ready to capitalize on opportunities.

Notable Earnings This Week:

This week’s earnings reports brought a mix of wins and challenges across industries. Here's a quick summary:

• GE Aerospace: Q4 earnings surged 103%, supported by strong revenue growth and a $7 billion share buyback. Stock rose nearly 10%.

• Electronic Arts (EA): Weak game demand led to a poor outlook, and shares dropped 16.7%.

• American Express (AXP): Strong card spending and revenue growth, but shares dipped 2.5% on market sentiment.

• Texas Instruments (TXN): Surpassed Q4 expectations but issued weak Q1 guidance, leading to a 4.8% drop.

• Intuitive Surgical (ISRG): Beat expectations with 25% revenue growth but saw its stock decline due to overvaluation concerns.

Even solid results weren’t always enough to satisfy investors, showing how forward guidance can heavily influence market reactions.

Financial News This Week

Here’s a concise summary of this week’s financial news:

Housing Market:

• Rents fell 1.1% YoY in December (Realtor.com), though CoreLogic reported rents up 1.5% YoY (lagging data).

• Existing home sales rose 2.2% in December, with YOY sales up 9.3%. Median home price climbed 6% YoY to $404,400.

• Inventory is tight, down 13.5% MoM, and remains well below pre-pandemic levels.

Jobs:

• Healthcare and social assistance added 219,300 jobs over the last three months, reflecting the needs of an aging population.

• Leisure and hospitality gained 87,000 jobs, but other sectors remain weak.

Oil:

• Trump’s oil drilling plan could lower prices by 23%, though the benefits may primarily go to shipping companies rather than consumers.

Markets:

• Apple and Tesla fell over 3% this week, but overall market activity stayed flat. Mortgage rates continued to decline and are expected to drop further.

Consumer Sentiment:

• The University of Michigan’s sentiment index fell to 71.1 from 74, marking the first decline in six months.

Outlook:

• The Fed’s preferred inflation measure, Core PCE, will be released next week, potentially influencing rate policy.

Housing showed strength, rents exhibited mixed trends, and rate movements hint at possible opportunities ahead.

Real Estate: Buy or Sell?

Reasons Real Estate Looks Solid:

• Reasons Real Estate Looks Solid:

  • Strong Demand:

    • December existing home sales rose 2.2%.

    • YOY sales increased 9.3%, showing resilience despite higher rates.

  • Tight Inventory:

    • Down 13.5% from last month and still well below pre-pandemic levels.

    • Median home price rose 6% YoY to $404,400, with 16% of homes selling above list price.

  • Positive Trends:

    • First-time buyers accounted for 31% of sales.

    • Falling rates could improve affordability and boost activity.

  Red Flags to Consider:

  • Consumer Sentiment: Dropped for the first time in six months, signaling potential caution.

  • Unemployment Risks: Rising joblessness could pressure home prices.

  • Falling Rents: Lagging rental data suggests deflation, which might impact short-term returns.

  Conclusion: Real estate is a cautious buy, especially for long-term investors targeting areas with job growth and limited inventory. Short-term flippers should monitor market conditions closely.

This Week’s Wealth Strategy

The BRRRR strategy—Buy, Rehab, Rent, Refinance, Repeat—is a proven method to grow your real estate portfolio. Here’s how it works:

• Buy: Purchase undervalued properties with a hard money loan for fast funding.

• Rehab: Use the loan to fund renovations and increase property value.

• Rent: Rent the property to generate steady cash flow.

• Refinance: Refinance into a traditional loan to pay off the hard money loan and free up capital.

• Repeat: Use the equity to invest in your next property.

Hard money loans have higher rates but offer speed and flexibility, making them ideal for distressed or undervalued properties.

Thank you for reading! If you found this newsletter helpful, please share it with anyone who might benefit. Stay tuned for 1-2 posts every week with the latest market updates and insights.

Kyle Allgair
CEO of KPA Home Loans
📞 (279) 977-8149 | ✉️ [email protected]
🌐 KPAhomeloans.com

Kyle Allgair is the CEO of KPA Home Loans, with years of experience helping clients build wealth through real estate and strategic financial planning. Contact him for personalized advice on achieving your financial goals.