The interest rate cut by the Federal Reserve in September of 50 basis points has led to “an improvement in the outlook” among bankers, the Fed said in its Beige Book for October issued Wednesday.
Reporting from each of the Fed’s districts and summarized in the semi-monthly report, based on input provided on or before Oct.11 (and summarizing the previous approximately six weeks), the book also proclaimed that activity in the banking sector “was generally steady to up slightly, and loan demand was mixed.”
The Beige Book also noted that housing market activity “has generally held up” with inventory continuing to expand in much of the nation, and home values largely holding steady or rising slightly.
“Still, uncertainty about the path of mortgage rates kept some buyers on the sidelines, and the lack of affordable housing remained a persistent problem in many communities,” the report noted.
Commercial real estate markets were generally flat, according to the report, although “data center and infrastructure projects boosted activity in a few Districts.”
Reports on consumer spending were mixed, with some districts noting shifts in the composition of purchases, mostly toward less expensive alternatives, the Fed said.