Tag Archive for ‘ADC’

AD&C Loan Volume Contracts

Despite broader interest rate declines for government bonds and mortgages, NAHB industry survey data for the second quarter of 2019 indicates that interest rates for acquisition, development and construction (AD&C) remain stubbornly elevated. For example, loans for spec single-family home building averaged a 6.2% rate for the second quarter. These higher interest rates have caused the volume of loans outstanding… 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 ›

Rates on Construction Loans Back Off Slightly in the First Quarter

After rising throughout most of 2018, with one minor exception, interest rates on loans for residential acquisition, development, and construction (AD&C) backed off slightly in the first quarter of 2019, according to results from NAHB’s latest AD&C survey. The NAHB survey showed average first quarter interest rates of 6.56 percent on land acquisition loans, 6.25 percent on loans for land… Read More ›

AD&C Loan Stock Declines for First Time Since 2013

The volume of residential construction loans decreased 0.2% during the fourth quarter of 2018, ending a period of 22 consecutive quarters of growth. While the decline was small, the slowdown in the stock of lending for development purposes mirrors a recent NAHB survey finding neutral conditions for AD&C lending as interest rates increased. Tight availability of acquisition, development and construction (AD&C) loans has been a limiting… Read More ›

Interest Rates on Construction Loans Showed Rising Trend in 2018

Interest rates on loans for residential acquisition, development, and construction (AD&C) generally increased throughout 2018, according to results from NAHB’s fourth quarter AD&C survey.  For the fourth quarter, builders and developers responding to the survey reported a median interest rate that varied from 5.75% on loans for pre-sold single-family construction, to 5.88% on loans for land development, to 6.00% on loans… Read More ›

Continued Residential Construction Loan Growth

The volume of residential construction loans increased by 2.8% during the third quarter of 2018, marking 22 consecutive quarters of growth. Furthermore, recent stabilization of year-over-year growth rates is an indicator of continued, modest growth for single-family construction. Tight availability of acquisition, development and construction (AD&C) loans has been a limiting or cost factor for home building growth, but easing credit conditions and a growing loan base have… Read More ›

Some Easing of AD&C Lending, According to Builders and Developers

In the third quarter of 2018, credit conditions eased somewhat, according to the builders and developers responding to NAHB’s survey on land acquisition, development, and construction (AD&C) loans. The net tightening index constructed from the NAHB survey was -12.0 in the third quarter quarter, compared to -5.0 the previous quarter. The index is constructed so negative numbers indicate easing of credit; positive tightening, so… Read More ›

Additional Growth for Residential Construction Loans

The volume of residential construction loans increased by 1.7% during the second quarter of 2018, marking 21 consecutive quarters of growth. Furthermore, recent stabilization of year-over-year growth rates is an indicator of continued, modest growth for single-family construction. Tight availability of acquisition, development and construction (AD&C) loans has been a limiting factor for home building growth, but easing credit conditions and a growing loan base have helped expand residential construction… Read More ›

Credit Conditions for AD&C Loans Close to Stable

In the second quarter of 2018, credit conditions for land acquisition, development, and single-family construction loans were close to stable, according to NAHB’s AD&C Financing Survey. The overall net tightening index constructed from the survey was -5.0. The index is constructed so that negative numbers indicate credit easing, positive numbers indicate tightening, and zero indicates perfectly stable conditions. The second… Read More ›

Steady AD&C Loan Growth

The volume of residential construction loans increased by 1.8% during the first quarter of 2018, marking 20 consecutive quarters of growth. Furthermore, recent stabilization of year-over-year growth rates is an indicator of continued, modest growth for single-family construction. Tight availability of acquisition, development and construction (AD&C) loans has been a limiting factor for home building growth, but easing credit conditions and a growing loan base have helped expand residential… Read More ›