Credit was tightened in the past three months, according to the Federal Reserve’s senior loan officer survey, which found respondents tightened standards for mortgages, credit cards, and consumer loans, while demand for consumer loans weakened.
“In the April survey, the net percentages of respondents that reported having tightened their business lending policies over the previous three months, although continuing to be very elevated, edged down for the second consecutive survey,” the Fed said. “In contrast, somewhat larger net percentages of domestic banks than in the January survey reported having tightened credit standards on residential mortgages.
“The net percentage of domestic respondents that reported having tightened their lending policies on credit card loans remained about unchanged from the January survey, whereas the net percentage that reported having tightened their policies on other consumer loans fell. Respondents indicated that demand for loans from both businesses and households continued to weaken for nearly all types of loans.”
