Yield PRO TV Rate Desk October 21, 2020

October 21, 2020 edition of Yield PRO TV Rate Desk with Michael Thomas. Utilizing FHA loans to subsidize states' low LIHTC supply and making your affordable housing projects pencil.

Rate Desk notes October 21, 2020
• Dow down, S&P, NASDAQ up
• UST yields .81
• Crude $40.07
• 223(f) 2.26%
• 221(d)(4) 2.86%
• Fannie 2.75%
• Freddie 3.00%
• Affordable Housing update:
o LIHTC 4% credit short supply with states
o Reduced equity
o AFR at 3.07% in October
o Equity pricing between $0.86-$0.90 per credit for non‐CRA
o HUD FHA 221(d)(4) loan proceeds 20‐30% higher
o Minimal negative arbitrage costs (.50 during construction)
• Market Rate update:
o 8% cash‐on‐cash return hard to find
o Cap rates have narrowed between 4‐4.50%.