A new report by the National Association of Home Builders (NAHB) states that banks increased their lending to single-family home builders by $2.3 billion in Q1 2016, almost 18 percent higher than lending in the same period one year ago. The NAHB’s analysis of of recent Federal Deposit Insurance Corp. (FDIC) numbers indicates that as of March, residential construction loans rose to $63.2 billion, as nationalmortgagenews informs MHProNews.
NAHB Chief Economist Robert Dietz says the 18 percent increase is consistent with the trade group’s forecast of 806,000 single-family starts this year, an increase of 13 percent from 2015, adding, “Lending is still in the easing territory but the rate of that easing has been slowing in the past few quarters.” He notes that the supply of available lots remains a stumbling block for small and midsize builders.
FDIC data indicates outstanding acquisition, development and construction loans, which includes commercial building, multifamiy and single-family project loans totaled $284.2 billion as of the end of the first quarter, an increase of 14 percent over the same period last year. ##
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Article submitted by Matthew J Silver to Daily Business News-MHProNews.