Fed Reports Tighter RE Credit Standards

Lenders have tightened their credit standards on residential and commercial real estate loans over the past six weeks, but there has been "some stabilization" in single-family originations, according to the Federal Reserve's Beige Book. "Banks reported mixed trends in lending activity, with fairly widespread slowing in the consumer segment, but some stabilization, at low levels, in residential mortgage activity," the April Beige Book says. The Fed's periodic report of economic activity refers to housing sales and construction as "generally anemic," with declines or downward pressure on selling prices in nine of the 12 Federal Reserve districts. Meanwhile, activity in the CRE sector has slowed, and eight districts reported "weaker" rental conditions. "The Boston, Philadelphia, Minneapolis, Kansas City, Dallas, and San Francisco districts all reported weakness in CRE sales and prices," the Fed publication said.