Reply #90: US mortgage, consumer loan demand down-Fed survey

[UpInArms]

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-08T190749Z_01_WAT004819_RTRIDST_0_ECONOMY-FED-LOANS-URGENT.XML

WASHINGTON, Feb 8 (Reuters) - Demand for mortgages and consumer loans weakened at U.S. banks in recent months, while competition forced banks to ease terms for commercial real estate loans, a Federal Reserve survey released on Wednesday found.

"On net, 44 percent of domestic banks reported weaker demand for mortgages to purchase homes, a notably larger fraction than in the October survey," the Fed said in its quarterly survey of senior loan officers.

Banks reported an easing of lending standards and terms for commercial and industrial loans and no change in lending standards -- in fact some tightening of standards -- for commercial real estate loans over the past three months.

At the same time, banks told the Fed that they had eased some terms for commercial real estate loans in the face of aggressive competition from bank and non-bank lenders.