Lending Activity Reports Mixed

Home building and sales remain strong across the country but reports about mortgage lending activity are mixed, according to the Federal Reserve Board's Beige Book.Mortgage lending "slowed somewhat," despite "some reports of new rounds of refinancing," the Atlanta Federal Reserve Bank said in its section of the Beige Book. The Atlanta FRB also noted an increased in the use of adjustable rate mortgages. The Chicago FRB reported that the refinancing "mini-boomlet" had subsided but originations remained strong in early April. Meanwhile, Philadelphia FRB found that lenders are anticipating a slowdown in mortgage activity. "Although demand for residential mortgage lending is currently high, bankers are uncertain that the recent pace of growth in mortgage lending will persist."