Beige Book: Some RE Lending Improved But Then Slowed

Some real estate lending has improved since early April but May activity was generally slow compared to the prior month, according to the Federal Reserve's Beige Book. "Real estate lending increased even though standards on these loans remained tighter than on other loans, particularly for commercial mortgages," according to the report, which reflected data as of May 28. Commercial real estate activity continued to be characterized as weak but "residential real estate improved since the last report," which covered the period leading up to April 5. "Most districts noted an increase in home sales and construction prior to the April 30 deadline for the homebuyer tax credit, with contacts in many of these districts also indicating a corresponding slowing in activity in May."