Residential real estate markets continue to bounce back from the doldrums of the recession, according to a Federal Reserve report released Wednesday.

The central bank's Beige Book found higher year-over-year home sales in the Atlanta, New York, Cleveland and Minneapolis districts.

Still, most of the activity in the residential market is happening at the lower end of the spectrum, thanks to first-time homebuyer tax credits. Only the Philadelphia Fed reported gains in the higher end of the mortgage market.

The commercial real estate market continues to falter as demand deteriorated in the Boston, Dallas, Kansas City, Philadelphia and Richmond districts.

Weaker loan demand was widespread; the New York, Philadelphia, Cleveland, Richmond, Kansas City, St. Louis and San Francisco districts said interest in loans was off.

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