As the year closes out, the word on HUD loan interest rates continues to be positive for skilled nursing facility owners and operators.

Erik Howard, president and COO of Capital Funding Bancorp, Inc. and president, CFG Bank, said HUD loans are being closed at around 5.35 percent in December, a marked change from just three months ago.

Speaking to Mark Parkinson, former head of the American Health Care Association/National Center for Assisted Living, on Parkinson’s web platform, Park Place Live (www.parkplacelive.com), Howard outlined the positive picture for HUD rates.

“When you go back even three months or so, for loans that closed in September we were at the high 5’s, 5.80 percent, 5.90 percent, but that number came down as we got into October to about 5.70 percent, and even lower in November close to 5.60 percent. And if you were locking in a HUD rate today [Dec. 15] you’d be right around the 5.35 percent area,” Howard said.

Although there is no direct correlation between Federal Reserve rate moves and HUD loan rates, the overall direction for rates is lower. The Fed last week cut its benchmark interest rate by a quarter point for the third time since September, putting its key rate to about 3.6 percent. That level is the lowest in three years.

Watch Parkinson’s interview with Howard on Park Place at www.parkplacelive.com. Park Place is hosted on the myzPAX platform. You can access us on mobile via the myzPAX mobile app available on the App Store. 

Questions or comments? Contact Patrick Connole at pconnole@parkplacelive.com.