Beige Book Reports Markets Remain Weak

Residential real estate markets "remained weak" in September and lenders continued to tighten credit standards on residential and commercial real estate mortgages, according to the Federal Reserve's Beige Book. Home sales and construction activity "moved lower" in a majority of Federal Reserve bank districts. However, residential markets in the Cleveland, Atlanta and Kansas City districts "showed some signs of stabilizing," the Beige Book says. In addition, inventories of unsold homes declined in "areas of the Boston and Atlanta districts, as well as in Philadelphia and Cleveland." Most district banks said commercial real estate leasing and construction has "slowed" with New York, San Francisco and Dallas reporting the "sharpest declines." CRE construction projects are being put on hold or canceled in several districts "due to tighter credit conditions and increased economic uncertainty," the Beige Book says.