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Interest Rates

NADCO, the trade association for the nation's Certified Development Companies (CDCs), reports that the effective interest rate for the 20-year debentures decreased from 5.30% in August to 5.25% in September.  The 10-year effective rate fell as well to 5.25%.  The effective interest rate for the new 25-year 504 loan is 5.29%.

The debentures that funded this month's 20-year 504 loans were sold to investors at an interest rate of 3.53%, which is a decrease from August.

The rates below are those quoted by NADCO. The Debenture Rate is the base P&I rate of the loan. The Effective Rate includes three servicing fees built into the monthly payment over the full-term of the loan and the closing costs that are added to the loan. The Effective Rate is not an APR. Click here for an explanation of how the interest rates are calculated. Interest rates are typically set on the first Tuesday of a month, with loans funding on the second Wednesday of the month.

 

20-Year Debentures
 Month Debenture Rate Effective Rate Refinancing
 September 2018 3.53% 5.25% 5.30%
 August 2018  3.58%  5.30% 5.35%
 July 2018 3.54% 5.36% 5.31%
 June 2018 3.60% 5.32% 5.37%
 May 2018 3.50% 5.22% 5.27%
 April 2018  3.31%  5.03% 5.08%
 March 2018 3.20% 4.92% 4.97%
 February 2018 3.22% 4.94% 4.99%
 January 2018  2.92%   4.64%   4.69% 
 December 2017 2.78%  4.50%   4.61% 
 November 2017  2.79%   4.51%   4.62% 
 October 2017  2.85%   4.64%   4.68% 
 September 2017 2.59% 4.38% 4.42%
       
 
25-Year Debentures
  Debenture Rate
Effective Rate
Refinancing
 September 2018 3.65% 5.29% 5.34%
 August 2018 3.71% 5.35% 5.40%
 July 2018 3.68% 5.32% N/A
 


 
 
10-Year Debentures - sold every other month
   Debenture Rate
 Effective Rate
Refinancing
 
 September 2018
3.14% 5.25% N/A
 July 2018 3.19% 5.30% 5.36%
 May 2018 3.18% 5.30% 5.36%
 March 2018  3.00%   5.11%  5.17%
 January 2018  2.55%   4.66%  N/A
 November 2017  2.29%   4.47%   4.52% 
 September 2017 1.98% 4.15% 4.20%

Historical 10-year Rates

Historical 20-year Rates

Historical 25-year Rates