[1]Residential acquisition, development, and construction loans are up 2.3 percent as of the end of the final quarter, according to data released by the National Association of Homebuilders [2] on Tuesday.
Data released from the FDIC [3] and NAHB [4] show the stock of 1-4 unit residential loans rose by $1.158 billion during the fourth quarter, an increase of 2.23 percent.
While limited availability for construction loans has been preventing a rebound in home construction, residential loan stock has been rising for the past two years.
On a year-over-year basis, the stock of residential AD&C loans is up 17% from the final quarter of 2013.
The FDIC data only represents at stock of loans however, the consistent growth in AD&C loans is a promising development that could suggest improving lending conditions.
Lending is however, lower than in previous years. The current AD&C loan stock is lower now at $51.2 billion than when it rose to $203.8 billion in 2008.
The newly released FDIC data shows the decline from peak lending for home building AD&C loans continues to nonresidential, land development, and multifamily AD&C loans. This group of AD&C loans has recorded six straight quarters of increase.
Although there is increase in residential AD&C lending, a gap between the demand for home building and available credit still exist. This lending gap is being made up with other sources of capital, including equity, investments from non-FDIC insured institutions and lending from other private sources, which may in some cases offer less favorable terms for home builders than traditional AD&C loans.