Residential real estate markets have become "sluggish" in most parts of the country following the April 30 expiration of federal homebuyer tax credits, according to the Federal Reserve's new 'Beige Book' report.
The periodic survey of economic activity in the 12 Federal Reserve Bank districts found that contacts in the Boston, Philadelphia, Atlanta and Kansas City districts expect home sales to "weaken" going forward.
Home construction in the Cleveland district is not expected to turnaround anytime soon, according to the July survey. Starts are expected to decline in the Dallas district during the second half of the years and builders in the Chicago district are not breaking ground until they have a signed contract.
Meanwhile, "demand for residential mortgage credit eased in the Philadelphia, district but increased in the New York district," the Fed says.
The Cleveland district reported residential mortgage activity is "below expectations at given rates."