The economy continued to expand in August, but there was "some cooling" in new- and existing-home sales, according to the Federal Reserve Beige Book."Home price appreciation, home sales and residential construction activity remained at high levels in most districts, although there were numerous reports of slight cooling in market activity," the Beige Book says. Federal Reserve banks in New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, Kansas City, and San Francisco reported signs of moderation in home prices or sales in their districts. "Reports from southern California indicated scattered hints of some softening," the San Francisco Reserve bank says. "Contacts reported that the amount of time needed to sell the supply of houses on the market rose slightly in some areas and that the pace of home price appreciation has begun to slow." Meanwhile, demand for commercial and industrial space remained "tepid" and most district banks reported "stable but high vacancies and steady but low rents."

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