News in end use

Freddie Mac is reporting that its Multifamily Apartment Investment Market Index® declined by -4.8% in Q4 2021 and is down -2.4% when compared to Q4 2020. Record multifamily price appreciation, which saw its largest single-quarter growth in the history of the index, and rising mortgage rates more than offset unprecedented growth in net operating incomes.

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending March 18, 2022, the Market Composite Index (a measure of mortgage loan application volume) declined -8.1% on a seasonally adjusted basis from one week earlier.

According to the new monthly Mortgage Bankers Association’s Loan Monitoring Survey, the total number of loans now in forbearance decreased by -12 basis points from 1.30% of servicers’ portfolio volume in the prior month to 1.18% as of February 28, 2022. The MBA estimates that 590,000 homeowners remain in forbearance plans.

Statistics Canada (StatsCan) reported today (3-22-22) that prices of products manufactured in Canada rose 3.1% month-over-month in February 2022 and were up 16.4% year-over-year. The prices of raw materials purchased by manufacturers operating in Canada increased 6.0% month-over-month in February 2022 and are up 29.8% year-over-year.

The ESR has indicated that continuing supply chain issues, increasing inflation, and the conflict in Ukraine are all placing macroeconomic pressure on the market. These factors have resulted in the downgrading of their expectations for GDP growth by year-end from 2.8% in their February 2022 commentary to 2.3% in their March 2022 commentary.

The Canadian Real Estate Association has updated its forecast for home sales activity via the Multiple Listing Service® Systems of the Canadian Real Estate Boards and Association in 2022 and extended the forecast into 2023. The report reveals that home sales started 2022 below 2021 levels, while price growth has continued at a record-breaking pace.

Redfin reported today (3-21-22) that the average monthly asking rent in the U.S. increased year-over-year by 15% to a record high of $1,901 in February 2022. According to the report, this is the largest annual jump since at least February 2020. The national median monthly mortgage payment for homebuyers climbed 31% year over year to $1,716.

The Mortgage Bankers Association (MBA) announced today (3-21-22) the results of their latest Commercial/Multifamily Delinquency report. According to the report, commercial and multifamily mortgage delinquencies declined in Q4 2021. MBA’s quarterly analysis looks at commercial/multifamily delinquency rates for five of the largest investor-groups.

The National Association of Realtors® (NAR) reported on Friday (3-25-22) that total existing home sales dropped -7.2% month-over-month in February to a seasonally adjusted rate at 6.02 million homes. Year-over-year, sales are down -2.4% (6.17 million February 2020).

Statistics Canada (StatsCan) reported today (3-18-22) that new home prices in Canada increased 1.1% month-over-month in February. Year-over-year (February 2021 – February 2022), they increased 10.9%. Prices increased in 18 of the 27-census metropolitan areas and were unchanged in 9.