News in end use

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.

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%.

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.

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.

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.

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.

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.

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.

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.