The biggest mover was condo construction loans, for which thedelinquency rate spiked 400 basis points to 20.5%. Next in line wasresidential construction financing, the delinquency rate for whichrose 270 basis points to 15.1%. The delinquency rate for purecommercial construction loans increased 110 basis points to 5.2%while apartment construction loan delinquency increased 80 basispoints to 3.7%.


The total amount of construction loans outstanding shrunk by1.6% during the third quarter, up from a 0.9% decline in the secondquarter. Single family residential construction loan totalscontracted by 8% in the third quarter. Multifamily constructionloan totals shrunk by 2%, with shrinkage on the condo sideoffsetting moderate growth on the apartment side.


Non-residential commercial construction loan totals expanded by4% in the third quarter, which is down slightly from its secondquarter pace. Foresight Analytics principal Matt Anderson saysgiven the freeze in credit markets since mid-September, contractionis likely in the fourth quarter.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.