Fed January SLOOS Survey: Banks reported Weaker Demand for Residential Real Estate
From the Federal Reserve: The January 2025 Senior Loan Officer Opinion Survey on Bank Lending PracticesThe January 2025 Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS) addressed changes in the standards and terms on, and demand for, bank loans to businesses and households over the past three months, which generally correspond to the fourth quarter of 2024. Regarding loans to businesses over the fourth quarter, survey respondents reported, on balance, tighter lending standards for commercial and industrial (C&I) loans to firms of all sizes. Meanwhile, banks reported stronger demand for C&I loans to large and middle-market firms, while demand for C&I loans to small firms remained basically unchanged. Furthermore, banks generally reported tighter standards and basically unchanged demand for commercial real estate (CRE) loans. For loans to households, banks reported, on balance, basically unchanged lending standards and weaker demand across most categories of residential real estate (RRE) loans. In addition, standards reportedly tightened for credit card loans and remained basically unchanged for auto and other consumer loans, while demand weakened for credit card and other consumer loans but remained basically unchanged for auto loans. Further, banks reported basically unchanged lending standards and demand for home equity lines of credit (HELOCs). The January SLOOS included a set of special questions inquiring about banks’ expectations for changes in lending standards, borrower demand, and loan performance over 2025. Banks reported expecting lending standards to either ease or remain basically unchanged and demand to strengthen across all loan categories. In addition, banks generally reported expecting loan quality to improve for loans to businesses but to either deteriorate or remain basically unchanged for most consumer loan types. emphasis added Click on graph for larger image. This graph on Residential Real Estate demand is from the Senior Loan Officer Survey Charts. This graph is for demand and shows that demand has been weak since late 2021. The left graph is from 1990 to 2014. The right graph is from 2015 to Q4 2024.
From the Federal Reserve: The January 2025 Senior Loan Officer Opinion Survey on Bank Lending Practices Click on graph for larger image.
This graph on Residential Real Estate demand is from the Senior Loan Officer Survey Charts.
This graph is for demand and shows that demand has been weak since late 2021.
The January 2025 Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS) addressed changes in the standards and terms on, and demand for, bank loans to businesses and households over the past three months, which generally correspond to the fourth quarter of 2024.
Regarding loans to businesses over the fourth quarter, survey respondents reported, on balance, tighter lending standards for commercial and industrial (C&I) loans to firms of all sizes. Meanwhile, banks reported stronger demand for C&I loans to large and middle-market firms, while demand for C&I loans to small firms remained basically unchanged. Furthermore, banks generally reported tighter standards and basically unchanged demand for commercial real estate (CRE) loans.
For loans to households, banks reported, on balance, basically unchanged lending standards and weaker demand across most categories of residential real estate (RRE) loans. In addition, standards reportedly tightened for credit card loans and remained basically unchanged for auto and other consumer loans, while demand weakened for credit card and other consumer loans but remained basically unchanged for auto loans. Further, banks reported basically unchanged lending standards and demand for home equity lines of credit (HELOCs).
The January SLOOS included a set of special questions inquiring about banks’ expectations for changes in lending standards, borrower demand, and loan performance over 2025. Banks reported expecting lending standards to either ease or remain basically unchanged and demand to strengthen across all loan categories. In addition, banks generally reported expecting loan quality to improve for loans to businesses but to either deteriorate or remain basically unchanged for most consumer loan types.
emphasis added
Click on graph for larger image.This graph on Residential Real Estate demand is from the Senior Loan Officer Survey Charts.
This graph is for demand and shows that demand has been weak since late 2021.
The left graph is from 1990 to 2014. The right graph is from 2015 to Q4 2024.
