As weaknesses continue to pervade the mortgage market, a Federal Reserve Board report released Wednesday noted pockets of optimism.
The Beige Book reported “some stabilization” in the residential mortgage market since March and said lending activity increased in the central bank’s Philadelphia; Richmond, Va.; and St. Louis districts. The Federal Reserve banks of New York, Cleveland, Chicago, and San Francisco said home mortgage lending had stabilized.
Bankers told the Kansas City Fed they were “somewhat less pessimistic.”
But signs of mortgage and credit woe remained. The New York, Philadelphia, and Cleveland districts reported rising delinquencies. And lenders in the New York; Cleveland; Atlanta; Chicago; Kansas City, Mo.; Dallas; and San Francisco districts said they were tightening credit standards. The Chicago Fed said difficulties obtaining credit were not limited to the realty market.
