Fed: Residential Lending Still Robust

Federal Reserve district banks are reporting that residential mortgage lending is "rising or remaining solid," according to the Federal Reserve Board's Beige Book.The Chicago Reserve Bank reported that "demand for home-purchase mortgages remained strong and applications for mortgage refinancings increased slightly" in April and May. The Philadelphia Reserve Bank noted slower-than-expected refinancings. However, lending for home purchase mortgages, home equity loans, and home equity lines of credit was "on the rise." In the West, "the pace of home sales, price appreciation and home construction was rapid in most parts of the district," the San Francisco Reserve Bank reported. And demand for home loans "remained at high levels in most areas." The Beige Book also noted improved commercial real estate markets in several Federal Reserve districts, but the Boston Reserve Bank reported that local markets "continue to struggle."