News in end use

Fannie Mae today released its Home Purchase Sentiment Index® for August, which dropped 0.8 points to a reading of 62.0. This marks the sixth consecutive month of declines, as high home prices and elevated mortgage rates continue to drag down consumer sentiment.

The latest National Association of Home Builders’ Home Building Geography Index reports that home building activities have moved to low-density and low-cost markets since the beginning of the pandemic. This has led to a decline in single-family construction in large metro core and inner suburbs between Q4 2019 to Q2 2022.

In another sign that competition in US real estate markets is cooling, Blackstone Inc. announced that its Home Partners of America Division, the single-family landlord, was ceasing the purchase of homes in nearly half of the 80 markets where it currently operates.

A closer look at the Bureau of Labor Statistics’ (BLS) August nonfarm payroll employment report shows both residential and non-residential construction industry employment totaled 7.7 million in August, exceeding its February 2020 level. In August, construction employment grew by 16,000 jobs.

In their latest market report for the 4-week period ending August 28, Redfin is reporting that as the housing market cooldown continues, the average home sold for less than its list price—the first time in over 17-months that selling below list has happened.

The US Bureau of Labor Statistics reported that total nonfarm payroll employment increased by 315,000 in August. Nonfarm employment has risen by 5.8 million over the past 12 months. This growth brings total nonfarm employment 240,000 higher than its pre-pandemic level in February 2020.

Statistics Canada reported today that in July, the total value of building permits in Canada dropped 6.6% to $11.2 billion (CAD), mainly due to declines in the residential sector. On a constant dollar basis (2012), the total value of building permits decreased 4.8% to 6.9 billion.

On Thursday, the US Census Bureau reported that total construction spending during July 2022 was estimated at a seasonally adjusted annual rate (SAAR) of $1,777.3 billion, 0.4% below the revised June estimate of $1,784.3 billion.

According to Challenger, Gray & Christmas, Inc.’s (CG&C) Job Cuts Report released today (9-1-22), US-based employers announced 20.485 job cuts in August. This is a 21% decrease from the 25,810 job cuts announced and reported in July 2022.

Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending September 1, 2022. The PMMS reports that the 30-year fixed-rate mortgage (FRM) averaged 5.66% with an average 0.8 point, up from last week when it averaged 5.55%.