Beige Book: Mortgage Demand Picks up in New York, Cleveland

The housing market could be picking up a slight head of steam, but only in selected markets, according to the Federal Reserve’s new ‘Beige Book’ report.

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The Fed, in its periodic survey of economic conditions in different regions of the nation, noted a “few slight improvements” in the housing market during July and August.

However, housing markets “remained weak overall,” the central bank reported.     

Federal Reserve district banks in New York and Cleveland reported increased demand for residential mortgages.

“Contacts in the Boston, Atlanta, Minneapolis and Dallas districts reported an increase in home sales over the previous year’s weak levels,” the Beige Book says. 

Home prices were generally “flat to slightly down” and several district banks reported an increase in remodeling activity.

The 12 district banks had to submit their readings of economic activity to the Fed by Aug. 26.

“Most districts said loan quality was generally improving and that credit standards were largely unchanged” from May, the Fed says.  However, lenders in the New York district tightened standards on commercial real estate loans.

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Article source: http://www.nationalmortgagenews.com/dailybriefing/2010_427/mortgage-demand-up-ny-cleveland-1026461-1.html?CMP=OTC-RSS

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