According to analysis provided by the Associated Builders and Contractors (ABC) regarding the U.S. Bureau of Labor Statistics’ (BLS) December Producer Price Index, construction input prices rose 0.6% in December when compared to November. Nonresidential construction input prices also increased 0.6% for the month.
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Goods Used in Residential Construction Climb 1.5% in December
According to the Bureau of Labor Statistics’ (BLS) latest Producer Price Index (PPI), which was released on Thursday (1-13-22) with additional analysis provided by the National Association of Home Builders (NAHB), reveals that the price of goods used in residential construction, less energy, climbed 1.5% in December (not seasonally adjusted). The index was driven higher by a significant price increase for wood products.
Relocation, Renovations, and Refinancing All Expected to Grow in 2022
According to the newest LendingTree survey, approximately 40% of Americans are considering a move in 2022. Among those responding to the survey, nearly a third said that the pandemic has changed what they are looking for in a home, as well as the location. Consumers are seeking more space to accommodate the actualities of remote work, as the global pandemic continues into another year.
University of Michigan Preliminary Consumer Sentiment Index Decreases for January
The University of Michigan today (1-14-21) released its preliminary Consumer Sentiment Index (CSI) for January. The Index of Consumer Sentiment declined to a reading of 68.8 in January down from 70.6 in December — a month-over-month decrease of -2.5% and down -12.9% year-over-year (79.0 in January 2021). The Current Economic Conditions dropped to a reading of 73.2 in January, down from 74.2 in December — a month-over-month decrease of -1.3%, and down -15.6% year-over-year (86.7 in January 2021).
Canadian Investment in Building Construction Increased 1.2% in November
Statistics Canada (StatsCan) reported today (1-13-22) that investment in building construction increased 1.2% to $18.0 billion (CAD) in November. Every component, except industrial construction, experienced an increase. On a constant dollar basis (2012=100), investment in building construction grew 0.5% to $12.3 billion. Overall, residential construction investment rose 1.5% to $13.1 billion in November.
Home Prices Start 2022 at New Record High Levels
Redfin, the Seattle-based, technology-powered real estate brokerage firm, reveals in their latest housing market report (1-13-22) that, during the week ending January 9, 2022, the median home sale price increased year-over-year by 16%, reaching an all-time record high of $365,000. According to Redfin’s Homebuyer Demand Index (HDI), homebuyer activity jumped 9%, while the number of homes for sale fell to a new all-time low within the report’s time frame.
Producer Price Index for Final Demand Increases 0.2% in December
The Bureau of Labor Statistics (BLS) reported today (1-13-22) that the Producer Price Index (PPI) for final demand, seasonally adjusted, increased 0.2% in December. The December rise follows a 1% increase in November and 0.6% increases in October, September, and August. On an unadjusted basis, the final demand index rose 9.7% percent in 2021 — the largest calendar-year increase since data were first calculated in 2010.
Mortgage Rates Climb Higher in Week Ending January 13, 2022
Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending January 13, 2022. The PMMS reports that the 30-year fixed-rate mortgage averaged 3.45% with an average 0.7 point, up from last week when it averaged 3.22%. A year ago, at this time, the 30-year FRM averaged 2.79%.
Weekly Jobless Claims Increase in the Week Ending January 8, 2022
The U.S. Department of Labor is reporting that an additional 230,000 Americans made their initial filing for unemployment benefits during the week ending on Saturday, January 8, 2022. This is an increase of 23,000 from the previous week’s unrevised level. The 4-week moving average was 210,750 — an increase of 6,250 from the previous week’s unrevised average.
Consumer Price Index Increases 0.5% in December and 7.0% Year-Over-Year
The U.S. Bureau of Labor Statistics (BLS) reported on Wednesday (1-12-22) that the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.5% in December on a seasonally adjusted annual basis. This follows a 0.8% increase in November and a 0.9% increase in October. Over the past 12-months, the all-item index has increased 7.0% before seasonal adjustment — the largest 12-month increase since the period ending June 1982.