Tag Archive for ‘housing finance’

Homeowners’ Equity Continues to Improve

The Board of Governors of the Federal Reserve System published the Financial Accounts of the United States for the second quarter of 2017. The balance sheet of U.S. households with real estate continues to improve as the increases in home prices continue. Households’ owner-occupied real estate increased to $23.8 trillion in the second quarter of 2017, $1,597 billion more than… Read More ›

AD&C Financing Conditions Ease, But At A Slower Pace

Builders and developers responding to NAHB’s AD&C Financing Survey continue to report easing credit conditions for acquisitions, development, and single-family construction loans. In the second quarter of 2017, the overall net tightening index based on the AD&C survey was -10.7, indicating net easing. All major categories of AD&C financing also recorded net easing, but land acquisition and single-family construction loans… Read More ›

Residential Construction Loan Growth at Smaller Banks Has Slowed

Residential construction loans held by banks have grown over the past 4 years. However, in recent quarters, growth in the stock of residential construction loans has slowed. The recent slowdown in residential construction loan volume largely reflects a deceleration in growth across smaller banks, those with assets below $10 billion. These banks hold the majority of the bank-held residential construction… Read More ›

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 ›

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 ›

The Distribution of Residential Construction Loans Among Banks

Smaller banks, those with assets of less than $10 billion, hold the majority of residential construction loans, according to NAHB analysis of Federal Deposit Insurance Corporation (FDIC) data. Unlike mortgages, a larger proportion of residential construction loans at FDIC-insured institutions are held by banks with assets between $100 million and $10 billion. In addition, a greater proportion of mid-sized banks… Read More ›

Mortgage Rates in January

Results from a survey administered by the Federal Housing Finance Agency (FHFA) indicate that mortgage rates rose in January 2017*. Over the month, contract rates on mortgages used to purchase single-family newly constructed homes increased by 24 basis points to 4.02 percent. Although the monthly change reported by FHFA contrasted with a report by Freddie Mac, the results of the… Read More ›

NAHB Survey: AD&C Financing Standards Continue to Ease

Builders and developers continue to report easing credit conditions for acquisition, development, and construction (AD&C) loans according to NAHB’s survey on AD&C Financing. However, the pace of easing slowed somewhat from the second quarter. In the 4th quarter of 2016, the overall net tightening index based on the AD&C survey was -7.3. The 4th quarter reading indicates slightly less easing… Read More ›

Mortgage Originations Grow in Q4

According to the Federal Reserve Bank of New York’s Household Debt and Credit Report, mortgage originations grew in the 4th quarter of 2016. Largely resulting from 4th quarter growth, origination volume in 2016 exceeded its level in 2015. This marks the second consecutive year of growth in originations. As the chart above illustrates, there was approximately $617 billion in originations… Read More ›