Loan Officer Survey: Weaker demand for commercial loans, stronger demand for mortgages

On balance, demand for commercial and industrial loans weakened over the second quarter of 2017 while banks left their standards on C&I loans basically unchanged. Survey respondents also reported that standards on commercial real estate (CRE) loans tightened while demand weakened on net.

For loans to households, banks reported that lending standards on all categories of residential real estate (RRE) loans eased or remained unchanged, although the net share of banks reporting easing was, at most, moderate in each category.

Banks also reported, on net, that demand for most categories of RRE loans strengthened over the second quarter, although, again, the net share was never more than moderate.

In addition, modest net fractions of banks reported tightening standards and weaker demand for auto and credit card loans.

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