Acquisitions, Development and Single-Family Loan Conditions Ease in Second Quarter

Sept. 6, 2017

Builders have reported that they’re seeing easing credit conditions for acquisitions, development and single-family construction loans, according to a blog post by the National Association of Home Builders (NAHB).

Respondents to NAHB’s Acquisition, Development and Construction Financing Survey for the second quarter reported an overall net tightening in the index based on the survey, which was -10.7, indicating net easing.

All of the survey’s major categories, including land acquisition, land development and single-family construction, also saw easing in the second quarter. “Though some concerns lurk, lending standards remain broadly supportive of continued loan growth,” wrote Micheal Neal of NAHB.

Still, the pace of ongoing easing has sputtered; the index’s reading of net tightening in the first quarter and final quarter of 2016 was -25.0. (The lower the index, the higher the extent of credit easing.) Note also that the Federal Reserve Board’s Senior Loan Office Opinion Survey indicates continued tightening in the space, in contrast to the NABH survey, though the Fed’s survey tracks loan providers instead of consumers, and tracks nonresidential lending, while the NAHB survey does not.

– Nicholas Stern, managing editor

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