According to the Federal Reserve’s well-recognized Beige Book report, U.S. economic conditions have shown signs of improvement through the first part of this year.

The central bank’s report is a summary of economic activity from businesses and contacts outside the Federal Reserve from across the country. Its latest Beige Book, issued this week, was compiled in preparation for the Fed board’s March 16th policy meeting and is based on information collected through February 22.

Data from nine (Boston, New York, Philadelphia, Cleveland, Chicago, Minneapolis, Kansas City, Dallas, and San Francisco) of the 12 Federal Reserve districts indicated that economic activity improved, but in most cases the increases were “modest,” the Fed said.

Conditions in the Atlanta and St. Louis districts were described as “mixed,” while Richmond reported that economic activity in that part of the country “slackened or remained soft across most sectors,” due largely to severe weather conditions in February in that region.

Residential real estate markets improved in a number of districts, according to the report. However, New York, Atlanta, and Chicago noted that activity remained weak or softened further. San Francisco accounted for little change, and the St. Louis district characterized residential conditions as mixed. Richmond also reported overall housing activity as mixed, but noted that absent the harsh weather, market conditions might have improved.

Most districts attributed stronger home sales to the federal tax credit for homebuyers, with several contacts apprehensive about future sales once the credit expires. Philadelphia, Cleveland, Kansas City, and Dallas reported that sales were strongest for low-priced and starter homes, while Dallas cited financing difficulties for high-end homes.

Home prices mostly remained flat or declined slightly, but signs of improvement were noted in the Boston and San Francisco districts. A real estate agent in a relatively upscale area of the New York district said prices have continued to drift downward but that short sales were relatively rare and most transactions were still above the mortgage balance.

Most districts characterized commercial real estate and construction activity as weak or having declined further, but some districts noted slight stabilization and a few signs of modest improvement. Dallas noted that leasing fell at a slower rate and San Francisco cited increased leasing in some segments. New York reported steadying in vacancies and rents outside of New York City. Several districts also noted that many tenants were pushing for, and in some cases receiving, concessions on rents.

Loan demand remained weak across the country, and most districts indicated that banks remained cautious about lending and underwriting standards remained tight.