Business loan standards ease in U.S., but mortgage lending remains tight

Lending in the commercial and residential real estate markets, on the other hand, has remained unchanged and tight.

The report showed 18.8% of large bank respondents reported easing standards on loans for large and middle-market firms on business loans.

When asked the reason for eased terms on business lending, 28 of 30 banks said it was due to “more aggressive competition from other banks or non-bank lenders.”

Residential home lending, however, reported little change. Some 94.4% of all bank respondents said their mortgage standards had remained “basically unchanged,” compared to 3.7% of banks that had tightened them somewhat, and 1.9% that eased standards.

Meantime, 31.5% of banks said demand for prime residential mortgages was weaker, compared to just 7.4% that saw stronger demand. The remainder, 61.1%, saw demand as unchanged in the last three months.

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