News in end use

Statistics Canada reported today that investment in building construction decreased 1.3% to $20.2 billion (CAD) in December. On a constant dollar basis (2012-100), investment in building construction decreased 2.0% to $11.6 billion.

The Mortgage Bankers Association released today its Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. The survey reports that commercial and multifamily mortgage originations were 54% lower in 2022Q4 compared to a year ago and were 23% lower from 2021Q3.

On Thursday, the Associated Builders and Contractors reported that, according to the association’s proprietary model, the construction industry will need to attract an estimated 546,000 workers on top of the normal pace of hiring in 2023 to meet the demand for labor.

The Federal Reserve Board’s January 2023 Senior Loan Office Opinion Survey reveals that over 2022Q4, banks reported weaker demand for residential real estate (RRE) loans, home equity lines of credit (HELOCs), and commercial real estate (CRE) loans.

According to the recent National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index, just 38.1% of new and existing home sold between October and the end of December 2022 were affordable to families earning the US median income of $90,000.

Redfin reported on Friday that the US median asking rent rose 2.4% year-over-year to $1,942 in January. This marks the smallest increase since May 2021 and the lowest level in nearly a year. The 2.4% increase in roughly one-sixth the pace of January 2022.

The University of Michigan on Friday released the preliminary results of its Consumer Sentiment Index for February. The Index of Consumer Sentiment rose to a reading of 66.4, up from 64.9 in January. This is a month-over-month increase of 2.3% and up 5.7% year-over-year.

Statistics Canada reported that in January employment increased by 150,000, or 0.8%. Of that number, 121,000 were full-time positions. The increase in total employment continues a trend that began in September, with cumulative gains for the period totaling 326,000.

According to the Mortgage Bankers Association’s Mortgage Credit Availability Index report, which analyzes data from the ICE Mortgage Technology, mortgage credit availability decreased in January. This marks the tenth drop in the past eleven months.

Freddie Mac has released its Primary Mortgage Market Survey® for the week ending February 9, 2023. According to the survey, the 30-year fixed-rate mortgage averaged 6.12%, up from last week when it averaged 6.09%.