News in end use

Data from the US Census Bureau’s Survey of Construction, with additional analysis provided by the National Association of Home Builders, reveals that custom homes accounted for 17.6% of new single-family homes started in 2022. This share is down slightly from 17.8% recorded in 2021.

Freddie Mac has released its Primary Mortgage Market Survey® for the week ending December 8, 2022. The 30-year fixed-rate mortgage averaged 6.33%, down from last week when it averaged 6.49%.

The US Department of Labor is reporting that the advance figure for seasonally adjusted initial unemployment claims was 230,000 during the week ending on Saturday, December 3, 2022. This is an increase of 4,000 from the previous week’s revised level of 226,000 (originally reported as 225,000).

Fannie Mae on Wednesday released its Home Purchase Sentiment Index® (HPSI) for November. The HPSI increased 0.6 points to a reading of 57.3—the first increase recorded in the past nine months. Nonetheless, the HPSI remains just above the all-time low that was established last month in October.

According to the Mortgage Bankers Association’s Weekly Mortgage Application Survey, for the week ending December 2nd, the Market Composite Index (a measure of mortgage loan application volume) decreased 1.9% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 36.0%.

According to an Associated Builders and Contractors analysis of construction spending data published by the US Census Bureau on Thursday, national nonresidential construction declined by 0.3% in October. On a seasonally adjusted annualized basis, nonresidential spending totaled $898.4 billion.

According to analysis by the National Association of Home Builders (NAHB) of its NAHB/Wells Fargo Housing Market Index (HMI), in November, 36% of single-family home builders reported reducing their prices and 59% were offering special sales inducements. The NAHB says that these are paltry when compared to financial crisis of 2007-2008.

Black Knight is reporting in their December 5th mortgage monitor report that the ongoing home price correction is exposing a growing pocket of equity risk concentrated among purchases mortgage originating in 2022. Of all homes purchased with a mortgage in 2022, 8% are not at least marginally underwater.

The National Association of Home Builders is reporting that slower new homes sales pushed residential construction loan volumes to a post-Great Recession high during 2022Q3. Outstanding builder loan balances are rising as development debt is being held longer as new homes remain in inventory longer.

Statistics Canada reported today that the total value of building permits in Canada fell 1.4% to $10.0 billion (CAD) in October. On a constant dollar basis (2012=100), the total value of building permits decreased 0.9% to $6.0 billion.