Home Equity Boom Looming Kuma Capital Investments – September 10th, 2025 Re: Housing Cycles, Baby Boomers, and the Refinance Opportunity Setting the Stage Exactly four years ago, mortgage rates spiked to their highest levels in two decades, freezing the U.S. housing market. Homeowners locked into 3% mortgages stayed put. Transaction volumes plunged. Refinances—the profit engine of mortgage lenders—collapsed. Today, we believe the pendulum is poised to swing back. Rates have eased from their highs near 8% to the mid-6% range. History shows that even a modest decline of 30–50 basis points can double the pool of refinance-eligible borrowers . In August alone, cash-out refinances rose 31% year-over-year , while overall refi locks increased 27% . The cycle, long muted, is beginning to stir. The Demographics Behind the Market The generational context is equally important. Baby boomers now represent 42% of home buyers and 53% of sellers , with many buying outright in cash thank...
In the evolving landscape of investment opportunities, private credit stands out as a burgeoning frontier that not only offers enticing returns but also a necessary alternative in the post-global financial crisis era. With banks tightening their belts under rigorous regulations, private credit markets have surged, stepping in to fill the void left behind in mid-market lending. However, as with any investment, private credit comes with its own set of challenges and opportunities. The Appeal of Private Credit Private credit's allure is largely due to its higher yield potential, especially attractive in today’s persistently low-interest-rate environment. For investors weary of the meager returns from more traditional fixed-income assets, private credit offers a lucrative harbor. Moreover, its low correlation with conventional asset classes like equities and public debt makes it an excellent portfolio diversifier, reducing overall volatility and potentially enhancing returns. Under...