Fed "Beige Book": Little Movement in Home Prices

Sales of lower priced homes are doing much better than expensive ones in all parts of the nation, thanks, in part, to the first-time homebuyer tax credit, according to the Federal Reserve's latest "Beige Book" report. However, the central bank notes that home prices have changed little since its last "Beige Book." According to recent stories by National Mortgage News, the jumbo and super jumbo loan markets are suffering from a lack of available credit except for consumers with hefty down payments and large cash balances in their bank or brokerage accounts. Not surprisingly, residential construction activity remained at low levels in most districts with the Fed noting that home building "was reported to have increased in the Chicago and Minneapolis" districts. The $8,000 first-time homebuyer tax credit was extended through the spring but is not expected to be renewed after its current sunset.