Monday, August 2, 2010

Real Estate Loans



















The above is the latest results for real estate loans at commercial banks. The decrease is still quite strong and it seems to be increasing again on an annualized basis. There were a couple of positive peaks but the correlated with Government programs and were not sustainable.

As we noted in the analysis of the GDP data this real estate data may give further evidence of deflationary trends. The driver may not be lack of demand but lack of supply at demand market prices.