by Calculated Risk on 8/04/2025 02:00:00 PM
From the Federal Reserve: The July 2025 Senior Loan Officer Opinion Survey on Bank Lending Practices
The July 2025 Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS) addressed changes in the standards and terms on, and demand for, bank loans to businesses and households over the past three months, which generally correspond to the second quarter of 2025.
Regarding loans to businesses over the second quarter, survey respondents reported, on balance, tighter lending standards and weaker demand for commercial and industrial (C&I) loans to firms of all sizes. Furthermore, banks generally reported tighter standards and weaker demand for commercial real estate (CRE) loans.
For loans to households, banks reported basically unchanged lending standards and weaker demand for residential mortgage loans, on balance. In addition, banks reported tighter lending standards and stronger demand for home equity lines of credit (HELOCs). For consumer loans, standards tightened for credit card loans and remained basically unchanged for auto and other consumer loans. Meanwhile, demand weakened for credit card and other consumer loans and strengthened for auto loans.
The July SLOOS included a set of special questions inquiring about the current level of lending standards relative to the midpoint of the range over which banks’ standards have varied since 2005. Banks reported that, on balance, levels of standards are currently on the tighter end of the range for all loan categories. Compared with the July 2024 survey, banks reported easier levels of standards for most loan categories except residential real estate (RRE) loans, for which levels of standards were comparable with July 2024.
emphasis added
Click on graph for larger image.
This graph on Residential Real Estate demand is from the Senior Loan Officer Survey Charts.
This graph is for demand and shows that demand has been weak since late 2021.
The left graph is from 1990 to 2014. The right graph is from 2015 to Q1 2025.
Only demand for HELOCs was reported as stronger.
