WASHINGTON–Demand for commercial and industrial (C&I) loans was in the first quarter, as was demand for many household loans, according to a new report from the Federal reserve.

The findings were released as part of the April 2025 Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS), which seeks to address changes in the standards and terms on, and demand for, bank loans to businesses and households over the past three months (generally corresponding to Q1 2025).

For commercial real estate (CRE) loans, the SLOOS reported, banks reported tighter or basically unchanged lending standards, and weaker or basically unchanged demand.

Additional Findings

“For all CRE loan categories, banks reported having tightened policies related to loan-to-value ratios and debt service coverage ratios,” the Fed said in a statement. “For some CRE loan categories, banks also tightened policies related to market areas served and the length of interest-only payment periods,” the Fed said. “For office loans, banks reported having tightened all queried policies on such loans over the past year.

Household Lending Weakens

Meanwhile, the Fed reported that four household loans the survey found weaker demand for several categories, including residential real estate (RRE), credit card and other consumer loans. 

Demand for auto loans was unchanged.

RRE Standards Unchanged

In addition, standards for RRE were unchanged, along with auto and other consumer consumers. Credit card borrowers faced tightened standards, the Fed said.

Demand was stronger, however, for loans for home equity lines of credit (HELOCs), the agency said, with unchanged lending standards.

Fort more info, go here.