According to a first quarter of 2020 survey conducted by the National Association of Home Builders (NAHB), builders and developers are reporting tighter credit conditions for land acquisition, development, and single-family home construction (AD&C). While interest rates remain at or near historic lows, builders and developers are reporting that credit criteria for AD&C is as tight or tighter than it was in 2012. A similar index from the Federal Reserve’s survey of senior loan officers confirms that criteria for loans has been tightened. Much of the responsibility for the tighter credit conditions seems to be falling on the shoulders of the COVID-19 pandemic and its impact on the overall economy.
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