Residential Loan Demand Sluggish, Fed Says

Lower interest rates prompted an increase in refinancings even as residential loan demand "remained sluggish or declined" during January and February, according to the Federal Reserve's Beige Book. The periodic survey of economic activity in the 12 Federal Reserve districts reported that home sales "were low in every district with very few local exceptions." Inventories of unsold homes remain "high," and "districts that reported home prices all saw overall declines." Meanwhile, markets for office and retail space "showed signs of a slowdown" in several districts. "Office vacancies were reported up and leasing volumes down in Manhattan, Baltimore, Washington D.C., Memphis, portions of Maine and Rhode Island, and Las Vegas," the Beige Book says.