All Posts Tagged: commercial real estate

U.S. Outlook: Reading the tea leaves from the Loan Officer Survey

Scott Anderson
Chief Economist

The Federal Reserve released results from the April Senor Loan Officers Survey on Bank Lending Practices, which tracks changes in bank credit standards and terms and demand for bank loans from businesses and consumers of the last three months.

Middle-aged couple talking to a female banker, who's holding a pen.What stood out to us was continued broad-based weakness in loan demand from both businesses and households.

For more on this, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on May 11.

Key observations:
  • Banks reported that demand for commercial & industrial and commercial real estate loans weakened in the first quarter.
  • Banks also reported weaker demand for auto loans, credit cards, and most categories of residential real estate loans.
  • There is no evidence yet of a business investment or consumer spending surge coming from the U.S. banking industry.
  • Given the Federal Reserve’s determination to continue raising short-term interest rates into 2019, I don’t see bank lending conditions materially improving from here.

 

Read my full report.

Read More ›

Useful refinance program made permanent to help businesses grow

Don Mercer
Posted by Don Mercer
Small Business Banking
Asian-American woman working in flower shop talking with a customer.

The bedrock of the SBA 504 program is it offers long-term, fixed-rate loans with very competitive rates.

Read More ›

Factors that may help your buy-vs.-lease decision

Don Mercer
Posted by Don Mercer
Small Business Banking
Young-ish man sitting in creative office space, looking at his laptop.

In my view, there’s a right time and a wrong time for a business to invest in a building.

Read More ›

U.S. Outlook: Bank lending makes a comeback

Scott Anderson
Chief Economist
Graph showing demand for credit

The improvement in lending conditions is an encouraging sign for the economy in the quarters ahead.

Read More ›