News in end use

The National Association of Home Builders priced-out estimates for 2023 reveal that approximately 96.5 million US households are not able to afford a median-priced new home. An additional 140,436 households would be priced out of the new home market if prices were to go up by only $1,000.

Redfin reported on Friday that the median US home price fell 1.2% in February, marking the first year-over-year decline since 2012. Home purchases continued to level off after a sharp pullback in 2022H2. New listings were at their lowest level on record aside from the start of the pandemic.

Statistics Canada reported on Friday that prices of products manufactured in Canada, as measured by the Industrial Product Price Index (IPPI), declined 0.8% month-over-month in February, following a 0.3% increase in January. Year-over-year, the IPPI was up 1.4%.

The Conference Board released today its Leading Economic Index® (LEI) for the US in February. The LEI declined 0.3% in February to a reading of 110.0 (2016=100), after declining 0.3% in January. The LEI has dropped 3.6% over the six-month period from August 2022 to February 2023.

The University of Michigan on Friday released the preliminary results of its Consumer Sentiment Index for March. The Index of Consumer Sentiment declined to a reading of 63.4, down from 67.0 in February. This is a month-over-month decrease of 5.4% but up 6.7% year-over-year.

The US Census Bureau reported on Thursday that privately‐owned housing starts in February were at a seasonally adjusted annual rate of 1,450,000. This is 9.8% above the revised January estimate of 1,321,000. Single-family starts were at a rate of 830,000; this is 1.1% above the revised January figure of 821,000.

Freddie Mac has released its Primary Mortgage Market Survey® for the week ending March 16th. The PMMS reports that the 30-year fixed-rate mortgage averaged 6.60%, down from last week when it averaged 6.73%. A year ago at this time, the 30-year rate averaged 4.16%.

A closer look at January’s US Bureau of Labor Statistics Producer Price Index (PPI) reveals that for the second consecutive month the PPI for inputs to residential construction less energy increased, rising 0.3%, not seasonally adjusted, in February. This follows a revised 1.1% increase in January.

The Mortgage Bankers Association is reporting that data from its February Builder Application Survey reveals mortgage applications for new home purchases increased 4.0% from January and were 1.2% higher year-over-year.

The US Department of Labor is reporting that the advance figure for seasonally adjusted initial unemployment claims was 192,000 during the week ending on Saturday, March 11th. This is a decrease of 20,000 from the previous week’s revised level of 212,000.