The Fed continued to act to combat persistently high inflation. The Fed voted today to raise the primary credit rate by 0.75% to 3.25%. Also, the Fed voted to reduce its holdings of Treasury securities and agency mortgage-backed securities to approximately $60 billion and $35 billion, respectively. This follows six months of sustained U.S. inflation rate coming in north of 8%. The Fed’s actions were consistent with its announcements at prior meetings and market expectations. The Fed’s official press release is available here.

The combination of inflation concerns and the Fed’s response of short-term interest rate hikes and reducing its balance sheet holdings has fueled a rapid increase interest rates. The average rate on the popular 30-year fixed mortgage is up to 6.25%, the highest since 2008, according to the MBA. The yield on the US 10 Yr is now hovering around 3.50%, approximately 200 basis points higher since the start of the year. HUD commercial interest rates have continued to climb,  approaching 5% and higher. Check out today’s rates.

HUD Commercial Loan Rate Update – September 21, 2022

• 35-year fixed FHA perm loans: 4.85%-5.10%
• 40-year fixed FHA construction/perm loans: 5.30%-5.65%

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.

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