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.
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Mortgage Applications Increase in Week Ending January 7, 2022
According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending January 7, 2022, the Market Composite Index (a measure of mortgage loan application volume) increased 1.4% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 46% compared with the previous week. The Refinance Index decreased -0.1% from the previous week.
Mortgage Delinquency Rates Reach Pre-Pandemic Levels in October
According to CoreLogic Loan Performance Report for October, mortgage delinquency rates reached their pre-pandemic levels in October. The drop in the delinquency rate is being credited to an improving labor market and home equity increases. According to the report, in October, 3.8% of mortgages were delinquent by at least 30 days, including foreclosure. CoreLogic’s expectations are that rates will continue to decline during 2022.
FEA’s Paul Jannke Provides Expert Analysis and Insight into North America’s Housing and Lumber Markets in 2022
With the U.S. economy and employment growing robustly in 2021 and 2022, interest rates remaining low by historical standards, many of the supply-side constraints that held back housing over the past half-decade resolved, and high pent-up demand, Jannke says that he expects housing starts will continue to grow from an average of 1.584 million units in 2021 to 1.618 million in 2022. Ultimately, he expects lumber prices will continue to be volatile in 2022.
Mortgage Credit Availability Increased in December
According to the latest Mortgage Bankers Association’s Mortgage Credit Availability Index (MCAI), which analyzes data from Ellie Mae’s AllRegs® Market Clarity® business information tool, mortgage credit availability increased in December. The MCAI rose 0.8% in December to a reading of 125.9. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit.
NFIB’s Small Business Optimism Index Increases Slightly in December
The National Federation of Independent Business (NFIB), one of the largest small business associations in the U.S., reported today (1-11-22) that their NFIB Small Business Optimism Index increased slightly in December to a reading of 98.9, up 0.5 points from the November reading of 98.4. Seven of the 10 Index components improved and three declined. Twenty-two percent of owners reported that inflation was their single most important problem.
U.S. Sawmill Output Continues to Trail New Home Construction
The National Association of Home Builders (NAHB) has provided a deeper look into the relationship between U.S. domestic sawmills’ inability to increase output to meet growing demand since mid-2020 and the resulting lack of new home availability. The NAHB cites the lack of increased domestic sawmill activity as one of the primary factors that has contributed to record high lumber and panel prices and continuing price volatility in both the lumber and housing markets.
Homebuyers Will Continue to Face Record Supply Shortages in 2022
Redfin, the Seattle-based technology-powered real estate brokerage, in their latest housing market report reveals that the housing market started off the new year with fewer homes for sale than ever before, as active listings fell -27% year-over-year. The report also notes that the median home-sale price increased 14% year-over-year to $358,460, just shy of an all-time high. The median asking price of newly listed homes increased 12% year-over-year to $341,200.
Rental Costs Outpace Those of Home Ownership in 2021
ATTOM Data Solutions, the Irvine, California-based provider of nationwide property data, released on Friday (1-7-22) their Rental Affordability Report (RAR) for 2021. The RAR shows that owning a median-priced home is more affordable than the average rent on a three-bedroom property. Some 58% of the 1,154 U.S. counties analyzed for the report reveal that major home ownership expenses consume a smaller portion of average local wages than renting.
Fannie Mae’s Home Purchasing Sentiment Index® for December Reflects Conflicting Consumer Views on Homebuying and Home-Selling Conditions
Fannie Mae today (1-7-22) released their Home Purchasing Sentiment Index® (HPSI) for December. According to the report, the HPSI declined 0.5 points to a reading of 74.2 in December. This occurred as consumers continue to report conflicting views of homebuying and home-selling conditions.