Fed: Home Sales, Prices, Construction Still Falling

Home sales, prices, and construction continued to decline in most areas of the country in September, and many lenders tightened their credit standards, according to the Federal Reserve Board's Beige Book."Lending for home mortgages, equity lines and refinancing continue to soften in most Federal Reserve Bank districts," the Beige Book says. Commercial real estate markets remain "solid." But some district banks are seeing a "move to more conservative financing." In a recent speech, Fed Chairman Ben Bernanke warned that tighter terms and standards on nonprime and jumbo mortgages appear "likely to intensify the correction in housing significantly with adverse implications for construction activity and house prices." The Fed can be found online at http://www.federalreserve.gov.