Delinquency rates for most types of loans fell across the country during July, the Federal Reserve Board said Wednesday.
According to the Beige Book, the periodic report on economic conditions in the central bank's 12 districts, only the Federal Reserve Bank of Cleveland reported a slight increase, in consumer delinquencies.
Members of the Federal Open Market Committee use the report, among other data, to help guide monetary policy. Economists predicted that the FOMC would hold rates steady when it meets on Aug. 19.
"It's the same story: strong growth and inflation still on vacation," said James H. Chessen, chief economist at the American Bankers Association. "I don't think they are anxious to raise rates."
The Beige Book also noted that lending was mixed, with high demand for commercial loans in Cleveland, Richmond, Va., Atlanta, and Chicago. Consumer lending increased in Philadelphia and Cleveland, was flat in Chicago, and was down in St. Louis.
Commercial real estate markets continued to be strong, with "vigorous" construction, lower vacancy rates, and higher rents.
The New York Fed said banks, more willing to lend, reduced interest rates, particularly on home mortgages.
Average deposit rates increased.
"Facing declining net interest margins and slow growth in lending, banks ... are increasingly looking to introduce and expand fee-earning financial services for both businesses and individuals," the Philadelphia Fed added.
