The Federal Reserve Beige Book indicates expanded economic activity since the last report on Aug. 29.

Ten of the 12 reporting Federal Reserve districts indicated modest growth. The New York economic activity leveled and Kansas City slowed down.

Big improvements came in residential real estate conditions. Stronger existing home sales, increasing prices and declining inventories were noted in the Boston, Atlanta, Minneapolis, Dallas and San Francisco districts.

Modest price increases were reported in the New York, Richmond, Chicago, and Kansas City districts.

New York and Richmond reported relatively strong demand at the high and low ends of the market, whereas Philadelphia and Kansas City noted relative strength for mid-range homes; Boston indicated a shift in the mix toward lower or medium priced homes.

"Residential rental markets continued to be characterized as strong, even in the New York and Atlanta districts where rents increased somewhat less strongly than in recent months," the Beige Book states.

Residential construction is rising across the country as well.

Commercial real estate market performance was mixed.

jgaffney@housingwire.com