Interest rates soared on last week’s surprisingly strong jobs report and surging inflation. The Labor Department reported an increase in nonfarm payroll in January of 467,000 jobs, well above Wall Street’s 150,000 estimate. December’s jobs numbers were also revised up, from an initial reported gain of 199,000 to a revised 510,000 new jobs. The Labor Department further reported that the Consumer Price Index for January 2022 is up 7.5% compared to January 2021. This is up from the 7.0% increase reported in December and the highest inflation rate since 1982. A rate hike is expected at the Fed’s March meeting, with forecasts ranging from a 25 to 50 basis points.

Following the news, the yield on the US 10 Yr topped two percent for the first time since June 2019. The yield on the US 10 Yr is now hovering around 2.00%, up approximately 20 basis points over the past two weeks since our last update. Over the same period, HUD interest rates have climbed 30 basis points and is up approximately 50-60 basis points on the year. Check out today’s rates.

HUD Commercial Loan Rate Update – February 14, 2022

• 35-year fixed FHA perm loans: 2.95%-3.15%
• 40-year fixed FHA construction/perm loans: 3.50%-3.70%

These pricing indications are current as of the date posted, subject to market interest rate volatility.  Pricing of FHA insured apartment and healthcare loans may be dependent on loan size and other risk factors. Call for more information.

Interested in learning more about FHA's attractive loan programs?
Click to learn more!