News in end use

Statistics Canada reported today that investment in building construction increased 0.4% in August to $21.1 billion (CAD). On a constant dollar basis (2012=100), investment in building construction declined 0.2% to $12.7 billion.

The Canadian Real Estate Association (CREA) reported on Friday that home sales recorded over the Canadian MLS® System dipped from August to September by 3.9%. CREA notes that from May through August, month-over-month declines have been progressively growing smaller.

The University of Michigan released its Preliminary Consumer Sentiment Index for October. The Index of Consumer Sentiment increased to a reading of 59.8, up from its reading of 58.6 in September. This is a month-over-month increase of 2.0% but down 16.6% year-over-year (71.7 in October 2021).

The National Association of Home Builders/Westlake Royal Remodeling Index (RMI) posted a reading of 77 in 2022Q3. That is a year-over-year decline (2021Q3) of 10 points. An overall RMI of 77 points to positive remodeler sentiment.

The US Bureau of Labor Statistics reported on Thursday that the Consumer Price Index for All Urban Consumers (CPI-U) rose 0.4% in September on a seasonally adjusted basis. Over the past 12 months, the all-item index has increased 8.2% before seasonal adjustment.

Redfin reported today that the median US asking rent rose 9% year-over-year in September to $2,002 per month, the slowest growth since August 2021 and the first single-digit increase in a year. September was the fourth consecutive month in which annual rent growth decelerated.

Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending October 13th. The PMMS reports that the 30-year fixed-rate mortgage averaged 6.92% with an average 0.8 point, up from last week when it averaged 6.66%.

The US Department of Labor is reporting that, seasonally adjusted, an additional 228,000 Americans made their initial filing for unemployment benefits during the week ending on Saturday, October 8th. This is an increase of 9,000 from the previous week’s unrevised level of 219,000.

Fannie Mae’s Economic and Strategic Research (ESR) Group today released its October 2022 commentary. According to the ESR, the combination of high inflation, monetary policy tightening, and a slowing in the housing market is still projected to tip the economy into a modest recession in 2023Q1.

The Associated Builder and Contractors reported on Tuesday that its Construction Backlog Indicator increased to 9.0 months in September. This figure is based on a survey conducted between September 20th and October 5th. Year-over-year the reading is 1.4 months higher than in September 2021.