The biggest mover was condo construction loans, for which the delinquency rate spiked 400 basis points to 20.5%. Next in line was residential construction financing, the delinquency rate for which rose 270 basis points to 15.1%. The delinquency rate for pure commercial construction loans increased 110 basis points to 5.2% while apartment construction loan delinquency increased 80 basis points to 3.7%.
The total amount of construction loans outstanding shrunk by 1.6% during the third quarter, up from a 0.9% decline in the second quarter. Single family residential construction loan totals contracted by 8% in the third quarter. Multifamily construction loan totals shrunk by 2%, with shrinkage on the condo side offsetting moderate growth on the apartment side.
Non-residential commercial construction loan totals expanded by 4% in the third quarter, which is down slightly from its second quarter pace. Foresight Analytics principal Matt Anderson says given the freeze in credit markets since mid-September, contraction is likely in the fourth quarter.
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