Loan demand remained strong in most parts of the country this summer as brisk demand for commercial credit and consumer loans offset a decline in residential mortgage lending, the Federal Reserve Board said Wednesday.

While higher interest rates slowed mortgage refinancings, robust business expansion drove demand for commercial and industrial loans. Federal Reserve banks in Philadelphia, Richmond, Atlanta, Chicago, St. Louis, and Kansas City reported strong growth in business lending during June and July. Consumer lending, particularly for car loans, was hot in the Atlanta, St. Louis, Kansas City, and Dallas regions.

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