Despite renewed optimism about financial markets, a Federal Reserve Board study released Wednesday noted big hurdles remain in real estate and financial services.

Each of the central bank's 12 districts reported further weakening in the commercial real estate sector.

The residential market was less volatile, especially for low- and moderately-priced homes. Still, the St. Louis Fed reported a continuing housing slide in its district. Real estate agents told the Boston and Cleveland Fed banks that the outlook is more uncertain after the first-time homebuyer tax credit expires at the end of November.

The New York, St. Louis and Kansas City Fed banks said loan demand was stable or declining.

Credit quality was also spotty, with one-quarter of the regional Fed banks reporting steady or declining quality. The problems seemed particularly difficult in the New York district, which reported rising delinquencies for both retail and commercial mortgages.

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