Industry News

Fed reports ‘widespread cooling’ in housing

But economy continues to grow in latest beige book report

The economy continued to grow in the first weeks of fall, despite a "widespread cooling" in residential real estate markets, the Federal Reserve said in an economic report Thursday. Reports from the Fed's 12 districts cited lower asking prices, rising inventories of homes on the market and softening sales in the majority of areas. Financial institutions also reported that residential mortgage lending had tapered off. "Most districts reported higher home inventories, and several said that home builders and sellers continued to offer incentives to attract buyers," the Fed said in it's "beige book" report. "Softer home demand in San Francisco led to layoffs for mortgage brokers and real estate agents." A number of reports, however, indicated that residential housing activity was up in some markets, the Fed said. While overall housing activity was mixed in the New York and St. Louis districts, the report noted that condo sales in Manhattan showed "signs of resilience," and that housing s...