by Calculated Threat on 8/04/2025 02:00:00 PM
From the Federal Reserve: The July 2025 Senior Mortgage Officer Opinion Survey on Financial institution Lending Practices
The July 2025 Senior Mortgage Officer Opinion Survey on Financial institution Lending Practices (SLOOS) addressed modifications within the requirements and phrases on, and demand for, financial institution loans to companies and households over the previous three months, which typically correspond to the second quarter of 2025.
Relating to loans to companies over the second quarter, survey respondents reported, on steadiness, tighter lending requirements and weaker demand for industrial and industrial (C&I) loans to corporations of all sizes. Moreover, banks typically reported tighter requirements and weaker demand for industrial actual property (CRE) loans.
For loans to households, banks reported principally unchanged lending requirements and weaker demand for residential mortgage loans, on steadiness. As well as, banks reported tighter lending requirements and stronger demand for house fairness traces of credit score (HELOCs). For client loans, requirements tightened for bank card loans and remained principally unchanged for auto and different client loans. In the meantime, demand weakened for bank card and different client loans and strengthened for auto loans.
The July SLOOS included a set of particular questions inquiring in regards to the present degree of lending requirements relative to the midpoint of the vary over which banks’ requirements have diversified since 2005. Banks reported that, on steadiness, ranges of requirements are at the moment on the tighter finish of the vary for all mortgage classes. In contrast with the July 2024 survey, banks reported simpler ranges of requirements for many mortgage classes besides residential actual property (RRE) loans, for which ranges of requirements had been comparable with July 2024.
emphasis added
Click on on graph for bigger picture.
This graph on Residential Actual Property demand is from the Senior Mortgage Officer Survey Charts.
This graph is for demand and reveals that demand has been weak since late 2021.
The left graph is from 1990 to 2014. The suitable graph is from 2015 to Q1 2025.
Solely demand for HELOCs was reported as stronger.
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