The Connecticut Housing Finance Authority (CHFA) recently offered up $118 million in bonds rated AAA and Aaa by S&P Global and Moody’s.

Against a backdrop of uncertainty and a clear lack of direction in both the equity and fixed income markets last week, the CHFA sale was oversubscribed, receiving more than $350 million workable orders. Retail orders accounts for $67 million of the sale.

“As a self-funding quasi-public agency, the bond sales provide the funds that allow CHFA to offer below-market interest rates on mortgages for buyers with low- to moderate-incomes who are first-time buyers or haven’t owned a home in three years. Lower rates make it a little easier for them to make the leap from renters to homeowners,” Karl Kilduff, CHFA’s executive director, said in a statement.

CHFA’s current rates range from 3.625 percent and 3.875 percent (for the 1-point option), compared to the average conventional rate of 4.32 percent, based on Freddie Mac’s Primary Mortgage Market Survey.

CHFA issued a total of $693 million in bonds in 2017, providing funding for nearly 3,000 single-family mortgages.

Due to the strong response from retail and institutional investors, the senior manager reduced the coupons of various maturities between three and 10 basis points, which will lower the cost of its program.

CHFA was the first state housing financing agency in the country to sell bonds in the post-tax reform market, so the sale was closely watched. In the new lower corporate tax rate environment, there were concerns about investors seeking greater yields. However, CHFA saw little to no increase relative to Municipal Market Data and Treasuries.

The senior manager on the sale was Bank of America Merrill Lynch. Co-bond counsels were Kutak Rock, Hawkins Delafield & Wood and Lewis & Munday. Lamont Financial Services Corp. is CHFA’s financial advisor.