The US Department of Labor is reporting that the advance figure for seasonally adjusted initial unemployment claims was 214,000 during the week ending on October 15; this is a decrease of 12,000 from the previous week’s revised level of 226,000.
News in end use
US Housing Starts Fall in September, While Building Permits and Completions Rise
The US Census Bureau reported on Wednesday that privately‐owned housing starts in September were at a seasonally adjusted annual rate (SAAR) of 1,439,000. This is 8.1% below the revised August estimate of 1,566,000 and is 7.7% below the September 2021 rate of 1,559,000.
Hurricane Fiona’s Insured Damages in Atlantic Canada an Estimated $660 Million
The Catastrophe Indices and Quantification Inc. (IBoC) says that Hurricane Fiona caused an estimated $660 million (CAD) in insured damages. The IBoC says the storm was the costliest extreme weather event ever recorded in Atlantic Canada.
Canadian Consumer Price Index Continued to Decelerate in September
Statistics Canada reported today that the Canadian Consumer Price Index (CPI) rose 6.9% in September on a year-over-year basis, reduced slightly from its 7.0% gain in August. On a monthly basis, the CPI rose 0.1%.
Mortgage Applications Decline Again in the Week Ending October 14th
According to data from the Mortgage Bankers Association’s Weekly Mortgage Application Survey, for the week ending October 14, 2022, the Market Composite Index (a measure of mortgage loan application volume) decreased 4.5% on a seasonally adjusted basis from one week earlier.
Builder Sentiment Sinks Lower for the Tenth Consecutive Month in October
On Tuesday, the National Association of Home Builders/Wells Fargo Housing Market Index reported that builder sentiment in the market for newly built single-family homes tumbled 8-points lower in October to a reading of 38—half the level it was just six months ago. This marks the tenth consecutive decline.
Mortgage Applications for New Home Purchases Decline Month-Over-Month and Year-Over-Year in September
According to the Mortgage Bankers Association’s Builder Application Survey data for September, mortgage applications for new home purchases declined month-over-month by 7% and by 13.2% when compared to September 2021.
Shares of Mortgage Loans in Forbearance Inch Lower in September, but Near-Term Increase Is Expected
According to the Mortgage Bankers Association’s (MBA) Loan Monitoring Survey (LMS), the total number of loans now in forbearance decreased by 3 basis points from 0.72% of servicers’ portfolio volume in the prior month to 0.69% as of September 30th, 2022.
Building Materials Prices for Residential Construction Move Lower in September
A closer look into the Bureau of Labor Statistics September Producer Price Index (PPI), with a focus on building materials, reveals that the PPI for goods input to residential construction (including energy) declined for the third consecutive month in September by 0.1%. Prices have fallen 2.3% since June.
Single-Family Home Price Increases Slowed in Q3
Fannie Mae reported today (10-17-22) its latest Home Price Index (FNM-HPI) for 2022Q3. Single-family home prices increased at a non-seasonally adjusted rate of 13.8% in Q3—down from the revised Q2 reading of 19.1%. On a quarterly adjusted basis, home prices rose a seasonally adjusted 0.2% in Q3.