News in end use

According to data from the Mortgage Bankers Association’s Weekly Mortgage Application Survey, for the week ending February 10th, the Market Composite Index—a measure of mortgage loan application volume—decreased 7.7% on a seasonally adjusted basis from one week earlier.

According to an updated baseline forecast released on Monday by the Mortgage Bankers Association, total commercial and multifamily mortgage borrowing and lending is anticipated to decline by 15% to $684 billion in 2023, below the expected 2022 total of $804 billion.

The US Bureau of Labor Statistics on Tuesday reported that the Consumer Price Index for All Urban Consumers increased 0.5% in January, on a seasonally adjusted basis, after declining 0.1% in December. Over the past 12 months, the all-item index has increased 6.4% before seasonal adjustment.

The National Federation of Independent Business reported on Tuesday its Small Business Optimism Index (SBOI) for January. According to the report, the January SBOI increased 0.5 points to a reading of 89.8, marking the thirteenth consecutive month below the 49-year average reading of 98.

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.