The Federal Reserve’s Senior Loan Officer Survey on Bank Lending Practices reports that more banks have tightened credit lending standards for residential, commercial and consumer loans and are also less willing to make consumer installment loans. Survey participants report that the levels of standards are currently at the tighter end of the range since 2005. As banks pull back on lending, consumers and businesses are requesting fewer loans. The one exception has been mortgage loans; banks reported even stronger demand in Q2 than in Q1.
In 2Q more banks tightened lending standards for residential, commercial and consumer loans
In residential mortgages, jumbo loans saw the most tightening
Only residential mortgage loans saw increased demand in 2Q
Source: Federal Reserve