Fed: Economy Sees Steady Growth

May 2, 2012 | Comments Off on Fed: Economy Sees Steady Growth

The economy continues to show signs of strengthening, which could bode well for housing, according to the latest Federal Reserve survey, known as the “Beige Book.”

According to the Fed, the economy improved at a “modest to moderate” pace from mid-February to late March, and fears are lessening over the impact from the European debt crisis. However, rising fuel costs remain a concern. 

But for the real estate sector, progress is being seen in residential and commercial activity, according to the Fed’s report, which tracks all 12 districts across the U.S. Multifamily construction grew, mostly tied to senior housing and apartments.

“Residential real estate activity also improved in most districts, with Cleveland and San Francisco remaining outliers with lackluster real estate activity,” HousingWire reports on the Fed’s report.  

“In general, the demand for commercial and industrial loans remained steady, while several districts reported an increase in commercial real estate lending activity,” according to the Beige Book.

Source: “Fed Survey Shows Growth, Improving Hiring,” USA Today (April 11, 2012) and “Loan Demand and Real Estate Activity Levels Improve: Beige Book,” HousingWire (April 11, 2012)


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