Excerpts from the Beige Book:

(Prepared at the Federal Reserve Bank of Boston and based on information collected on or before August 20, 2012. This document summarizes comments received from business and other contacts outside the Federal Reserve and is not a commentary on the views of Federal Reserve officials. )

On mortgages:
" In the residential mortgage market, demand was described as stable to very strong, with a high percentage of applicants looking to refinance. Several bankers expressed concern about the low interest rate environment and compliance costs related to new regulations and their effect on profitability. We heard a few reports about a moderate loosening of lending guidelines."

On Housing:
"Reports from home-builders on single-family housing starts during July were mixed, although all of our contacts said that activity had improved compared to a year ago. Sales contracts were in all price-point categories. Homebuilders anticipate only a modest increase in the construction of single-family homes in the near term; however, opportunities for rehabilitating old buildings into apartments and constructing new apartments and special-needs housing are viewed as strong. Selling prices of new single-family homes were up slightly during the past six months, and rents increased in the low to mid-single digits. The volatility seen in building material prices over the past five months is beginning to subside, although there is still upward pressure on lumber prices. "

MBS and Treasuries both moved to their best levels...

Trading continues to be quite light overall and bond...

The U.S. Census Bureau announced today that August 2012 sales of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustment for seasonal variations and trading-day differences but not for price changes, were $405.4 billion, up 0.9 percent (+/-0.7) from the revised July level and were up 2.1 percent (+/-0.9%) from the August 2011 level. The July preliminary estimate was revised downward $0.4 billion or 0.1 percent. August sales of durable goods were up 0.9 percent (+/-0.9%)* from last month and were up 1.0 percent (+/-1.2%)* from a year ago. Sales of motor vehicle and motor vehicle parts and supplies were up 2.0 percent from last month. Sales of nondurable goods were up 0.9 percent (+/-0.9%)* from July and were up 3.0 percent (+/-1.2%) from last August. Sales of petroleum and petroleum products were up 5.6 percent from last month.

Total inventories of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustment for seasonal variations but not for price changes, were $487.5 billion at the end of August, up 0.5 percent (+/-0.4%) from the revised July level and were up 5.3 percent (+/-1.1%) from the August 2011 level. The July preliminary estimate was revised downward $0.3 billion or 0.1 percent. August inventories of durable goods were up 0.1 percent (+/-0.2%)* from last month and were up 7.5 percent (+/-0.9%) from a year ago. Inventories of machinery, equipment, and supplies were up 1.7 percent from last month, while inventories of computer and computer peripheral equipment and software were down 5.1 percent. Inventories of nondurable goods were up 1.2 percent (+/-0.7%) from July and were up 2.3 percent (+/-2.1%) from last August. Inventories of petroleum and petroleum products were up 9.4 percent from last month and inventories of drugs and druggists' sundries were up 1.5 percent.

The overnight session was one of the least riveting...

Excerpts from the Beige Book:

(Prepared at the Federal Reserve Bank of Boston and based on information collected on or before August 20, 2012. This document summarizes comments received from business and other contacts outside the Federal Reserve and is not a commentary on the views of Federal Reserve officials. )

On mortgages:
" In the residential mortgage market, demand was described as stable to very strong, with a high percentage of applicants looking to refinance. Several bankers expressed concern about the low interest rate environment and compliance costs related to new regulations and their effect on profitability. We heard a few reports about a moderate loosening of lending guidelines."

On Housing:
"Reports from home-builders on single-family housing starts during July were mixed, although all of our contacts said that activity had improved compared to a year ago. Sales contracts were in all price-point categories. Homebuilders anticipate only a modest increase in the construction of single-family homes in the near term; however, opportunities for rehabilitating old buildings into apartments and constructing new apartments and special-needs housing are viewed as strong. Selling prices of new single-family homes were up slightly during the past six months, and rents increased in the low to mid-single digits. The volatility seen in building material prices over the past five months is beginning to subside, although there is still upward pressure on lumber prices. "

MBS and Treasuries both moved to their best levels...

Trading continues to be quite light overall and bond...

The U.S. Census Bureau announced today that August 2012 sales of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustment for seasonal variations and trading-day differences but not for price changes, were $405.4 billion, up 0.9 percent (+/-0.7) from the revised July level and were up 2.1 percent (+/-0.9%) from the August 2011 level. The July preliminary estimate was revised downward $0.4 billion or 0.1 percent. August sales of durable goods were up 0.9 percent (+/-0.9%)* from last month and were up 1.0 percent (+/-1.2%)* from a year ago. Sales of motor vehicle and motor vehicle parts and supplies were up 2.0 percent from last month. Sales of nondurable goods were up 0.9 percent (+/-0.9%)* from July and were up 3.0 percent (+/-1.2%) from last August. Sales of petroleum and petroleum products were up 5.6 percent from last month.

Total inventories of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustment for seasonal variations but not for price changes, were $487.5 billion at the end of August, up 0.5 percent (+/-0.4%) from the revised July level and were up 5.3 percent (+/-1.1%) from the August 2011 level. The July preliminary estimate was revised downward $0.3 billion or 0.1 percent. August inventories of durable goods were up 0.1 percent (+/-0.2%)* from last month and were up 7.5 percent (+/-0.9%) from a year ago. Inventories of machinery, equipment, and supplies were up 1.7 percent from last month, while inventories of computer and computer peripheral equipment and software were down 5.1 percent. Inventories of nondurable goods were up 1.2 percent (+/-0.7%) from July and were up 2.3 percent (+/-2.1%) from last August. Inventories of petroleum and petroleum products were up 9.4 percent from last month and inventories of drugs and druggists' sundries were up 1.5 percent.

The overnight session was one of the least riveting...

The U.S. Census Bureau announced today that August 2012 sales of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustment for seasonal variations and trading-day differences but not for price changes, were $405.4 billion, up 0.9 percent (+/-0.7) from the revised July level and were up 2.1 percent (+/-0.9%) from the August 2011 level. The July preliminary estimate was revised downward $0.4 billion or 0.1 percent. August sales of durable goods were up 0.9 percent (+/-0.9%)* from last month and were up 1.0 percent (+/-1.2%)* from a year ago. Sales of motor vehicle and motor vehicle parts and supplies were up 2.0 percent from last month. Sales of nondurable goods were up 0.9 percent (+/-0.9%)* from July and were up 3.0 percent (+/-1.2%) from last August. Sales of petroleum and petroleum products were up 5.6 percent from last month.

Total inventories of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustment for seasonal variations but not for price changes, were $487.5 billion at the end of August, up 0.5 percent (+/-0.4%) from the revised July level and were up 5.3 percent (+/-1.1%) from the August 2011 level. The July preliminary estimate was revised downward $0.3 billion or 0.1 percent. August inventories of durable goods were up 0.1 percent (+/-0.2%)* from last month and were up 7.5 percent (+/-0.9%) from a year ago. Inventories of machinery, equipment, and supplies were up 1.7 percent from last month, while inventories of computer and computer peripheral equipment and software were down 5.1 percent. Inventories of nondurable goods were up 1.2 percent (+/-0.7%) from July and were up 2.3 percent (+/-2.1%) from last August. Inventories of petroleum and petroleum products were up 9.4 percent from last month and inventories of drugs and druggists' sundries were up 1.5 percent.

Excerpts from the Beige Book:

(Prepared at the Federal Reserve Bank of Boston and based on information collected on or before August 20, 2012. This document summarizes comments received from business and other contacts outside the Federal Reserve and is not a commentary on the views of Federal Reserve officials. )

On mortgages:
" In the residential mortgage market, demand was described as stable to very strong, with a high percentage of applicants looking to refinance. Several bankers expressed concern about the low interest rate environment and compliance costs related to new regulations and their effect on profitability. We heard a few reports about a moderate loosening of lending guidelines."

On Housing:
"Reports from home-builders on single-family housing starts during July were mixed, although all of our contacts said that activity had improved compared to a year ago. Sales contracts were in all price-point categories. Homebuilders anticipate only a modest increase in the construction of single-family homes in the near term; however, opportunities for rehabilitating old buildings into apartments and constructing new apartments and special-needs housing are viewed as strong. Selling prices of new single-family homes were up slightly during the past six months, and rents increased in the low to mid-single digits. The volatility seen in building material prices over the past five months is beginning to subside, although there is still upward pressure on lumber prices. "