NAHB: Builder Credit Tightened for a 19th Straight Quarter, Spec Loans at 11.83% Effective Rate
Credit conditions on residential land acquisition, development and construction loans tightened for a 19th straight quarter in the third quarter of 2026, according to the National Association of Home Builders' quarterly survey published on November 13.
The association's net easing index posted a third-quarter reading of -15.3, while lenders reported -15.5, with the two surveys giving the same answer. The loans covered are the short-term credit builders use to buy land, develop lots and build houses.
A speculative single-family construction loan carried a 7.72% contract rate but an 11.83% effective rate once initial points are counted, essentially unchanged from 11.82% in the second quarter.
The survey also found that 32% of builders who built single-family homes in the quarter financed some of them with a construction-to-permanent loan made to the home buyer, covering 58% of those builders' homes on average. The association publishes its AD&C financing survey quarterly.
Source: National Association of Home Builders
Published by GSM · USA (original Chinese edition)
Photo: 图：正在建造中的新住宅工地。来源：John Shea，Wikimedia Commons，公共领域。 / Photo: A new home under construction. Source: John Shea, Wikimedia Commons, public domain.
