Tag Archive for ‘interest rates’

Rates on Construction Loans Continue to Drift Downward

In the fourth-quarter of 2019, builders and developers reported declining interest rates on all types of loans covered in NAHB’s quarterly survey on acquisition, development and construction (AD&C) financing (Exhibit 8).  The average interest rate declined from 6.39 to 6.13 percent on loans for land acquisition, from 6.31 to 5.94 percent on loans for land development, from 5.99 to 5.63… Read More ›

Reversing Trend, Interest Rates on AD&C Loans Decline in 3rd Quarter

In the third-quarter of 2019, builders and developers reported declining interest rates on all types of loans covered in NAHB’s survey on acquisition, development and construction (AD&C) financing. In the third quarter, the average interest rate declined from 6.59 to 6.39 percent on loans for land acquisition, from 6.49 to 6.39 percent on loans for land development, from 6.21 to… Read More ›

Fed Lowers Target Rate for Third Time in 2019

The Federal Reserve reduced the target range for the key, short-term federal funds rate by 25 basis points to a top rate of 1.75% at the conclusion of its October Federal Open Market Committee (FOMC) meeting. This was the third cut in 2019, almost fully reversing a set of increases enacted in 2018. The FOMC views these enacted reductions as… Read More ›

Fed Lowers Rates in September

The Federal Reserve reduced the key, short-term federal funds rate by 25 basis points to a top rate of 2% at the conclusion of its September Federal Open Market Committee (FOMC) meeting. This was the second cut in 2019, partially reversing a set of increases enacted in 2018. The more dovish stance of the Fed is good for housing and… Read More ›

While Other Rates Decline, Rates on AD&C Loans Trend Up

In the second quarter of 2019, interest rates on loans for land acquisition, development, and single-family construction (AD&C) continued to drift upward, according to results from NAHB’s quarterly AD&C Financing Survey.  As the survey showed, relationships among the various subcategories of AD&C loans remained about the same, with the highest average interest rate—6.59 percent—recorded on loans for land acquisition loans,… Read More ›

Federal Reserve Reduces Rates in July

Perhaps as the most telegraphed interest rate cut of recent decades, the Federal Reserve reduced the key, short-term federal funds rate by 25 basis points to a top rate of 2.25%. This policy change is good for housing and home building, which continue to face housing affordability headwinds in spite of favorable demographics. There were two dissents to the announcement,… Read More ›

Rates on Construction Loans Back Off Slightly in the First Quarter

After rising throughout most of 2018, with one minor exception, interest rates on loans for residential acquisition, development, and construction (AD&C) backed off slightly in the first quarter of 2019, according to results from NAHB’s latest AD&C survey. The NAHB survey showed average first quarter interest rates of 6.56 percent on land acquisition loans, 6.25 percent on loans for land… Read More ›