The announcement this past Friday by U.S. and Chinese officials of a phase one trade deal have calmed markets, removing the risk of an all-out trade war from the equation, at least for the time being.  The equities market has responded with all major indexes rising, including the Dow Jones which reached a new record high.  The U.S. 10-year is now up approximately 40 basis points from its low in August.   As noted in this space previously, spreads on agency debt initially widened out when the yield U.S. 10-yr started falling hard over concerns of a U.S.-China trade war.  Despite the recent rise in the U.S. 10-yr, rates on agency debt have held relatively steady with compression in spreads. It will be interesting to watch interest rates moving forward.  

Today’s pricing:

• 35-year fixed FHA insured loans: 3.20%-3.45%
• 40-year fixed FHA construction/perm loans: 3.80%-4.05% 

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.