News in end use

According to data from the Mortgage Bankers Association’s Market Composite Index, mortgage loan application volume declined 4.6% on a seasonally adjusted basis from one week earlier.

That the count of multifamily, for-rent housing starts remained elevated in Q1. Of the 127,000 multifamily residences that started construction, 123,000 units were being built for rental use.

New residential single-family home sales for April were at a SAAR of 683,000, according to estimates. This is 4.1% above the revised March rate of 656,000 and 11.8% above the April 2022 estimate of 611,000.

As interest rates increased in 2022 and 2023 and housing affordability deteriorated, the demand for home size has trended lower. In Q1, the median single-family square floor areas registered at 2,261 square feet.

Statistics Canada reported that prices for products manufactured in Canada, as measured by the Industrial Product Price Index, declined 0.2% month-over-month in April and were 3.5% lower than April 2022.

Across the 48 states which reported construction sector data (both residential and non-residential), 24 states reported an increase in April compared to March, while 24 states reported losing construction sector employment during the same period.

Redfin is reporting that the median US home-sale price fell 2.7% during the four weeks ending May 14th, the smallest decline in over a month. Monthly mortgage payments hit a record high due to still-high prices and elevated mortgage rates.

The Mortgage Bankers Association (MBA) is reporting that mortgage applications for new home purchases decreased 11% month-over-month but were up 4.1% year-over-year.

Sata from the US Census Bureau’s Starts and Completions by Purpose and Design for Q1, with additional analysis provided by the National Association of Home Builders, shows single-family attached starts totaled 29,000 during Q1.

According to Fannie Mae’s Economic and Strategic Research (ESR) Group’s latest commentary, the ESR is expecting the economy to enter a modest recession in the second half of the year. Unusual dynamics continue to complicate forecasting the exact time.