During the first quarter of 2022, credit became tighter on loans for Acquisition, Development & Construction (AD&C) according to NAHB’s Survey on AD&C Financing. The NAHB survey produces a net easing index that summarizes the change in credit conditions, similar to the net easing index constructed from the Federal Reserve’s survey of senior loan officers (SLOOS). In the first quarter… Read More ›
Tag Archive for ‘construction lending’
Credit for Builders & Developers Eases at the End of 2021
In the fourth quarter of 2021, effective interest rates decreased on all four categories of loans tracked in NAHB’s Survey on Acquisition, Development & Construction (AD&C) financing. The average effective rate (based on rate of return to the lender over the assumed life of the loan taking both the contract interest rate and initial fee into account) decreased from 6.50… Read More ›
Construction Loans Slightly More Available, But at Higher Rates
In the third quarter of 2021, effective interest rates increased on all four categories of loans tracked in NAHB’s Survey on Acquisition, Development & Construction (AD&C). This result reverses a general downward trend that had prevailed since the third quarter of last year. In the third quarter of 2021, the average effective rate (based on rate of return to the… Read More ›
Rates Continue to Decline on Most Types of AD&C Loans
In the second quarter of 2021, interest rates on three of the four categories of loans tracked in NAHB’s Survey on Acquisition, Development & Construction (AD&C) Financing continued the downward trend that has prevailed since the third quarter of last year. The average effective rate (based on rate of return to the lender over the assumed life of the loan… Read More ›
Rates on Development & Construction Loans Continue to Decline.
Builders and developers responding to NAHB’s Survey on Acquisition, Development & Construction (AD&C) Financing continued to report declining interest rates in the first quarter of 2021. The average effective rate (based on rate of return to the lender over the assumed life of the loan taking both the contract interest rate and initial fee into account) decreased from 7.27 to… Read More ›
Better Credit Conditions & Rates for Builders at End of 2020
While home buyers were benefitting from low mortgage rates at the end of 2020, builders and developers were also experiencing lower interest rates and improved credit conditions, according to NAHB’s survey on financing for Acquisition, Development and Construction (AD&C). The net tightening index derived from the NAHB survey was -17.0 in the fourth quarter of 2020, compared to -3.3 in… Read More ›
Builder Credit: More Expansive But More Costly in 3Q
While lenders continued to report tightening in the third quarter, builders and developers responding to NAHB’s survey on financing for Acquisition, Development and Construction (AD&C) reported a near-neutral change in credit availability. The net tightening index derived from the NAHB survey was -3.3 in the third quarter of 2020, compared to 12.0 in the second quarter. The index is constructed… Read More ›
Again, Credit for Builders Tightens While Rates Decline
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 ›
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 ›