Eye On Housing
Continuing a period of weakness that began at the end of 2019, the volume of residential construction lending posted a slight decline during the second quarter of 2020. This decline corresponded with a significant drop for the NAHB/Wells Fargo Housing Market Index and 24% decline for single-family starts during the quarter. The volume of 1-4 unit residential construction loans made… Read More ›
Builders and developers responding to NAHB’s survey on financing for Acquisition, Development and Construction (AD&C) indicated that credit continued to become tighter in the second quarter of 2020. The net tightening index derived from the survey came in at 12.0, after reaching an 8 1/2-year high of 22.7 in the first quarter. The index is constructed so that positive numbers… Read More ›
Reversing a quarterly decline during the final quarter of 2019, the volume of residential construction lending posted a slight gain during the first quarter of 2020. This was prompted by the strong start for home construction in the early months of the year. The volume of 1-4 unit residential construction loans made by FDIC-insured institutions increased 2% after a 0.7%… Read More ›
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 ›
As interest rates declined during the second half of 2019, the stock of outstanding residential construction loans declined during the final quarter of 2019. The volume of 1-4 unit residential construction loans made by FDIC-insured institutions declined 0.8%. The volume of loans fell by $615 million during the quarter, placing the total stock of loans at $79.7 billion. On a… Read More ›
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 ›
After a slight (and delayed) dip in interest rates for AD&C loans, the stock of outstanding residential construction loans expanded during the third quarter of 2019. The volume of 1-4 unit residential construction loans made by FDIC-insured institutions increased 0.8%. The volume of loans increased by $628 million during the quarter, placing the total stock of loans at $80.3 billion…. Read More ›
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 ›
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 ›
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 ›