Dallas and Minneapolis report a recent rise in home sales, but Richmond, San Francisco, St. Louis, Chicago and most other districts have observed no improvement in starts from an extremely low level. A backlog of demand for housing is building up with few unsold units, as reported by Kansas City. Lower interest rates are the only hope for home building this year and time is running out, at least for the northern states. More builders and subcontractors are leaving the field. Production plans indicate large plantings, and subsoil moisture conditions are excellent.
Large crops suggest further downward pressure on prices.
Livestock prices have been rising, but most experts project a further decline in net farm income. Farm land prices are declining and delinquencies and bankruptcies are rising. Heavy debts at high interest rates, combined with lower income, could cause further deterioration in the financial condition of agriculture. Uncertainty continues to characterize the financial markets. Business loan demand is described as weak or flat in most districts.