A new Federal Reserve report noted that banks continue to get nervous overall and in particular about commercial real estate.

"Regarding loans to businesses, survey respondents reported, on balance, tighter standards and weaker demand for commercial and industrial (C&I) loans to firms of all sizes over the second quarter," the report said. "Meanwhile, banks reported tighter standards and weaker demand for all commercial real estate (CRE) loan categories." The reactions to CRE lending was similar levels of tightening by large banks and others.

The July Senior Loan Officer Opinion Survey on Bank Lending Practices, or SLOOS, got responses from 66 domestic banks and 19 U.S. branches and agencies of foreign banks. Surveys went out on June 15, 2023, and were due back June 30, so all the data is more than a month old. It may be that conditions aren't changing quickly enough to reduce the information's meaning.