Credit standards for acquisition, development, and construction (AD&C) loans have continued to ease, according to builders and developers who responded to NAHB’s Survey on Acquisition, Development & Construction Financing, reports Michael Neal of NAHB’s Eye on Housing blog.
According to the survey, 27.7% of survey respondents on net indicated that overall lending standards on AD&C loan availability had eased in the fourth quarter of 2015. But the pace easing has slowed somewhat from previous periods. In the third quarter, a net share of 30.3% of survey respondents said that lending standards had eased while 35.7% of respondents, on net, reported easing standards one year ago.
Since the index is constructed so that negative numbers indicate credit easing, and positive numbers mean that credit is tightening, then the graph below shows that net lending standards were -27.7% in the fourth quarter of 2015, -30.3% in the previous quarter, and -35.7% in the fourth quarter of 2014.