The Dallas Fed Banking Conditions Survey showed loan volume and demand rebounding over the past six weeks, alongside continued pricing pressure and modestly tighter credit conditions.

• Total loan volume increased to 13.8 (from -10.0), with 44.6% of banks reporting higher volumes, marking a clear rebound after the prior period’s contraction.

• Loan demand rose to 10.9 (from -7.1), indicating improving borrower demand compared with the previous survey window.

• Nonperforming loans eased to 7.9 (from 14.3), suggesting loan performance continued to deteriorate but at a slower pace than before.

• Loan pricing remained deeply negative at -60.3 (from -52.2), showing ongoing downward pressure on pricing despite stronger volumes.

• Credit standards and terms tightened slightly, with the index falling to -8.3 (from 0.0), while over 90% of respondents reported no change.

• By loan type, commercial real estate loan volume strengthened to 15.0 (from 6.1), while commercial and industrial loans remained negative at -5.0 but improved from -9.2; residential real estate (-3.3) and consumer loans (-13.9) stayed weak.

• General business activity improved to 4.7 (from 1.4) over the past six weeks, and expectations six months ahead rose to 35.4 (from 20.0), indicating more optimistic sentiment.

• Looking ahead six months, banks expect total loan demand to rise further, with the outlook index increasing to 44.6 (from 26.1), while expectations for nonperforming loans moderated to 4.6 (from 14.7).