Tag Archive for ‘finance’

Community Banks Account for Nearly Half of Residential Construction Loans

Residential construction loans held on FDIC-insured banks’ balance sheets reached $70.7 billion in the first quarter of 2017 with community banks accounting for approximately 49 percent of these loans. The current share of residential construction loans held by community banks is higher than community banks’ share of other types of loans, with the exception of farm-related loans. However, in recent… Read More ›

Home Equity Grows As The Composition Of (Fewer) Refinancings Shifts

According to the Federal Reserve Board’s first quarter of 2017 release of its Financial Accounts of the United States report, household holdings of real estate, measured on a not seasonally adjusted basis, totaled $23.526 trillion in the first quarter of 2017, $1.597 trillion higher than its level in the first quarter of 2016. Home mortgage debt outstanding, $9.813 trillion in the first… Read More ›

Consumer Credit Expands, But At A Slower Pace

According to the Federal Reserve Board’s G.19 Consumer Credit report, the total amount of consumer credit outstanding rose by 2.6 percent (SAAR) over the month of April 2017 to $3.82 trillion. Revolving credit, which is largely composed of credit card debt and represents $1.01 trillion, rose by 1.8 percent while non-revolving credit, which encompasses auto and student loans and totals $2.81… Read More ›

Mortgage Rates Fall

Following 4 consecutive monthly increases, results from the Mortgage Interest Rate Survey (MIRS) released by the Federal Housing Finance Agency (FHFA) indicate that mortgage rates fell in April 2017, its second consecutive month of declines. Over the month, contract rates on mortgages used to purchase single-family newly constructed homes declined by 10 basis points to 4.02 percent. Despite the decline, rates remain above the… Read More ›

Household Debt Levels Recovered, Composition Shifts

According to the Federal Reserve Bank of New York report, household debt has returned to its previous peak level. Since the recession’s end, consumer installment loans have grown faster than real-estate secured debt and has been shown to be rising faster than household income as well. At the same time however, transition rates into serious delinquency are higher on consumer… Read More ›

Trends in Delinquency Rates Point to Continued Healing

Following a surprising, but small, increase in the percent of 1-4 family first-lien mortgages that were either 90 or more days delinquent or were in the process of foreclosure over the fourth quarter of 2016, the Mortgage Bankers Association reported that the measure continued its descent in the first quarter of 2017. This measure of delinquency, at least for conforming… Read More ›

AD&C Financing Standards Continue to Ease

Over the first quarter of 2017, builders and developers reported easing credit conditions for acquisition, development, and single-family construction (AD&C) loans and the pace of easing quickened. Historically, results from the NAHB’s AD&C Financing Survey have tracked quarterly changes in bank-held residential construction loans. The overall net tightening index based on the AD&C Financing Survey was -25.0 in the first… Read More ›

Consumer Credit Balances, Debt Service Ratio Climb

According to the Federal Reserve Board’s G.19 Consumer Credit report, the total amount of consumer credit outstanding rose by 5.2 percent (SAAR) over the 1st quarter of 2017, 2.4 percentage points less than the 6.6 percent rate of growth in the 4th quarter of 2016. Consumer credit outstanding now totals $3.8 trillion. After declining on a quarterly basis over 2009… Read More ›

Rates Tick Down in March

Following 4 consecutive monthly increases, results from the Mortgage Interest Rate Survey (MIRS) released by the Federal Housing Finance Agency (FHFA) indicate that mortgage rates fell in March 2017*. Over the month, contract rates on mortgages used to purchase single-family newly constructed homes declined by 6 basis points to 4.12 percent. Despite the decline, rates remain above the low of 3.54 percent in… Read More ›

USDA Single Family Programs: Trends in Loans for Newly Constructed Homes

A recent NAHB study tracks trends in loans for new construction obligated under the USDA Single-family programs, the Section 502 Direct Loan Program and the Section 502 Guaranteed Loan Program. The report finds that, similar to the Federal Housing Administration’s single-family loan program, the USDA programs supported homeownership at a time when obtaining a conventional loan became increasingly difficult. However,… Read More ›