Acquisition, development and construction loans were virtually non-existent around the housing crash, but since recovery began, things have been loosening. National Association of Home Builders Chief Economist Robert Dietz reports that these loans are on the upswing.
The volume of residential construction loans jumped by 4.8% during the third quarter of 2016, marking 14 consecutive quarters of growth and setting the highest quarterly growth rate since the summer of 2014.
According to data from the FDIC and NAHB analysis, the outstanding stock of 1-4 unit residential construction loans made by FDIC-insured institutions rose by $3.1 billion during the third quarter of 2016, raising the total stock of outstanding loans to $68.3 billion.
On a year-over-year basis, the stock of residential construction loans is up 17.3%