The overall demand for home loans and auto loans has helped in the economy’s moderate growth, the Federal Reserve reported in their latest Beige Book update released recently.
From the information gathered from late February through April 5, the housing and automobile sectors showed strongest growths across Fed’s 12 districts.
“Most Districts said residential and commercial real estate improved markedly since the last report. Home prices were rising in many areas of the country. Loan demand was steady to slightly up in most Districts,” the Book reported.
Home prices were up in Atlanta, Dallas, Minneapolis, Kansas City, San Francisco, and New York districts. Great improvement in residential real estate—including both housing and apartments—was seen in the New York district. Moreover, sales in the housing sector are still in good shape in most Districts.
Meanwhile, several Districts reported a robust auto industry, particularly strong auto sales and demand for financing, while few noted a slight decrease in used car sales.
“Overall vehicle sales remained strong or increased, but sales of used automobiles declined in some Districts,” said the report.
The Districts where the auto sector is strongest include Philadelphia, Cleveland, Chicago, St. Louis,
and Minneapolis, among others.
Aside from residential construction and automobiles, Districts also saw growth in other sectors like manufacturing, consumer spending, travel and tourism, and nonfinancial services.