Tag Archive for ‘ad&c loans’

Credit for Builders Tightens, Virus Blamed

For the first time since 2012, builders and developers reported tighter credit conditions on loans for land acquisition, development and single-family construction (AD&C) in NAHB’s AD&C financing survey for the first quarter of 2020.  The net tightening index derived from the NAHB survey jumped to 22.7, about 40 points higher than the -22.3 reported in the fourth quarter of 2019. … Read More ›

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 ›

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 ›

AD&C Credit Standards Tighten, Even as Outstanding Loan Amounts Rise

Credit standards on loan applications for construction and land development loans or credit lines tightened, on net, over the fourth quarter of 2015. According to the most recent iteration of the Federal Reserve Board’s Senior Loan Officer Opinion Survey, a net share of 12.7% said that lending standards at their respective commercial bank tightened. The net share represents the difference between… Read More ›