News in end use

According to data from the Mortgage Bankers Association’s Weekly Mortgage Application Survey, for the week ending June 3, 2022, the Market Composite Index (a measure of mortgage loan application volume) declined -6.5% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index declined -17.0% compared with the previous week.

According to the National Association of Home Builders’ Home Building Geography Index for Q1 of 2022, single-family residential home building slowed in the suburbs, with most other regional areas following suit. This decrease follows the aftermath of the pandemic and home buyers’ preferences to live in the suburbs easing.

Fannie Mae today (6-7-22) released its Home Purchase Sentiment Index® (HPSI) for May. The HPSI declined in May by -0.3 points to a reading of 68.2. The index is now closer to its 10-year and pandemic-low of 63.0, recorded in April of 2020. Year-over-year (May 2021 – May 2022) the HPSI is down 11.8 points.

Redfin is reporting that the month of May marked a turning point in the pandemic housing craze, as buyers regained some control over the housing market. However, the increased sense of buyer control came with a great cost, as 5%+ mortgage rates and record-high prices have eliminated many buyers from the market.

The latest data from the Mortgage Bankers Association’s Purchase Applications Payment Index (PAPI) reveals that the median monthly payment for a new mortgage in April rose 8.8% to $1,889, up from March when it was $1,736. The national PAPI increased 7.8% to a reading of 162.7 in April, up from March’s reading of 150.9.

The U.S. Bureau of Labor Statistics (BLS) reported today (6-3-22) that total nonfarm payroll employment increased by 390,000 in May. This follows April’s upward-revised figure of 436,000, (+8,000) and March’s downward-revised figure of 398,000 (-30,000). With these revisions, employment in March and April combined is -22,000 lower than previously reported.

Statistics Canada reported today that the total value of building permits in Canada declined in -0.6% in April to $11.7 billion (CAD). The decline in residential permits of -3.3% were offset by gains in the non-residential sector of 5.0%. Single-family home construction intentions declined -2.0%. Multi-family building permits pulled back -4.4%.

According to data from the U.S. Census Bureau, continued improvement in the multifamily sector in Q4 of 2021 was the direct result of strong demand and low vacancy rates. Conversely, the decline in the number of apartment and condominium completions in Q4 of 2021 seemed to reflect the ongoing challenges within the supply chain.

Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending June 2, 2022. The PMMS reports that the 30-year fixed-rate mortgage averaged 5.09% with an average 0.8 point, down from last week when it averaged 5.10%. A year ago, at this time, the 30-year FRM averaged 2.99%.

According to the March ADP® National Employment Report™ released today (6-2-22), nonfarm private sector employment increased by 128,000 jobs from April to May. The ADP National Employment Report is produced by the ADP Research Institute® in collaboration with Moody’s Analytics.