Dive Brief:
- Lending for U.S. construction projects appear to be coming back from post-recession lows, with the year's second-quarter total of outstanding borrowing rising 4% from the first quarter to $223.2 billion for residential and non-residential projects.
- The Federal Deposit Insurance Corp. said outstanding loans for building one- to four-family homes totaled $48.2 billion on June 30, up 5.4% from the first quarter's finish.
- Outstanding construction loans hit their lowest point in the first quarter of 2013, and home-building loans bottomed at the same time.
Dive Insight:
The chief economist for Moody's Analytics said lending should keep increasing because lenders are regaining comfort with their business and construction is restrained by historic standards. Home builders, however, say that closely held companies are still are having trouble borrowing, and land development seems to make lenders wary. Though a lack of developed lots has been a problem in the recovery.