News in end use

According to the latest U.S. Bureau of Labor Statistic (BLS) Producer Price Index (PPI) with further analysis provided by the National Association of Home Builders (NAHB), the price paid for good used in residential constructions, less energy, rose 3.6% in May (not seasonally adjusted) and over the past 12 months have increased 16.5%.

Redfin, the Seattle-based technology powered real estate brokerage firm, is reporting that their Homebuyer Demand Index was down -14% from its peak 9 weeks ago and pending sales have declined -10% from their early-May peak. For the 4-week period ending June 13, 2021, Redfin is reporting that the asking price of newly listed homes were up 14% year-over-year, to a median of $363,450, down -0.2% from $364,225 during the 4-weeks period ending June 6, 2021.

According to the Mortgage Bankers Association’s (MBA) Builder Application Survey (BAS) data for May 2021, mortgage applications for new home purchases decreased -5.9% compared from a year ago. Compared to April 2021, applications decreased by -9%. This change does not include any adjustment for typical seasonal patterns.

A report released on Wednesday (6-16-21) by the Harvard Joint Center for Housing Studies (JCHS), titled “The State of the Nation’s Housing 2021,” reveals that as the U.S. economy continues to recover from the effects of the pandemic, households that weathered the crisis without financial distress are snapping up the limited supply of homes for sale — pushing up prices and further excluding less affluent buyers from homeownership.

The Conference Board, which was founded in 1916 as a non-partisan, not-for-profit think tank, released today (6-17-21) their May 2021 Leading Economic Index® (LEI) for the U.S. According to the release, the LEI (which is based on ten separate components) increased 1.3% in May, following 1.3% in April, and a 1.4% increase in March.

Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending June 10, 2021. The PMMS reports that 30-year fixed-rate mortgage averaged 2.93% with an average 0.7 point, down from last week when it averaged 2.96%. A year ago at this time, the 30-year FRM averaged 3.13%.

The U.S. Department of Labor is reporting that an additional 412,000 Americans made their initial filing for unemployment benefits during the week ending on Saturday, June 12, 2021 — an increase of 37,000 from the previous week’s revised level. The 4-week moving average was 395,00, which is a decrease of 8,000 from the previous week’s revised average.

According to a report released today (6-16-21) by the National Association of Realtors® (NAR) and authored by the Rosen Consulting Group, decades of underinvestment and underbuilding have created a shortage of housing in the U.S. that is more direct than previously anticipated and will require a concerted and long-term nationwide commitment to overcome.

The U.S. Census Bureau has reported that privately‐owned housing starts in May were at a seasonally adjusted annual rate (SAAR) of 1,572,000. This is 3.6% above the revised April rate of 1,517,000 and is 50.3% above the May 2020 rate of 1,046,000.

According to statistics released by the Canadian Real Estate Association (CREA) on Tuesday (6-15-21), Canadian national home sales and new listings were both down in May 2021. National homes sales recorded over the Canadian MLS® system declined month-over-month by -7.4% in May.