Managers do not foresee difficulties in obtaining materials in the near future. Inventories were down slightly from the previous survey, but most managers were eager to trim stock levels further. Real Estate and Construction Residential construction activity edged higher in September and early October following several months of decline, while commercial building was largely unchanged. Despite the small increase in housing starts, homebuilding remained well below year-ago levels in most areas of the district. Sales of new and existing homes were also flat to down in most areas of the district when compared to a year ago.
Most builders expect steady residential construction activity for the rest of the year.
Mortgage demand remained weak, with virtually no refinancing activity taking place in September. Most lenders do not expect mortgage demand to change in coming months. Commercial construction activity was mixed across the district, but was flat overall compared with both a month ago and a year ago. Absorption of office space increased slightly and office vacancies declined slightly during the past month. Absorption and vacancy rates both appeared to be about the same as a year ago.