The recent slowdown in residential construction could reduce the demand for mortgages and commercial real estate and construction loans—activities that have been important factors in loan growth for banks and thrift institutions in recent years. That’s according to the Winter 2006 edition of FDIC Outlook released today, which analyzes economic and banking conditions in each of the eight FDIC regions.
The FDIC report also shows that the ongoing expansion in service industries such as professional and business services appears to be offsetting the effects of the slowdown in housing and, to a significant degree, the Midwest automobile sector.
Click here for the complete report: FDIC Outlook
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