News in end use

The University of Michigan today (11-24-21) released its final Consumer Sentiment Index (CSI) for November. The Index of Consumer Sentiment declined to a reading of 67.4 in November, down from 71.7 in October. This is a month-over-month decrease of -6.0% and a year-over-year decrease of -12.4% (76.9 in November 2020).

The Bureau of Economic Analysis (BEA) released today (11-24-21) its “second” estimate of real gross domestic product (GDP) for Q3 2021. The BEA reports GDP was at an annual rate of 2.1%. The GDP estimate released today is based on more complete source data than were available for the “advance” estimate which was issued last month.

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending November 19, 2021, the Market Composite Index (a measure of mortgage loan application volume) increased 1.8% on a seasonally adjusted basis from one week earlier.

The U.S. Department of Labor is reporting that an additional 199,000 Americans made their initial filing for unemployment benefits during the week ending on Saturday, November 20, 2021. This is a decrease of 71,000 from the previous week’s revised level, and it’s the lowest level for initial job claims since November 15, 1969.

According to the latest quarterly U.S. Census Bureau data, with further analysis provided by the National Association of Home Builders (NAHB), the market share of rental units of multifamily construction starts declined to a reading of 93.4% in Q3 2021. This is the lowest share since Q1 2020. From a historical perspective, the lowest share of 47% was set during Q3 of 2005 during the condo building boom.

Home value appreciation slowed for the third consecutive month in October 2021, according to Zillow’s latest Home Value Index (ZHVI). However, home values rose 1.3% above September, slower than the all-time high monthly appreciation of 2% in July 2021. Zillow has found that the typical home value in the U.S. is now up to $312,728.

Redfin, the Seattle-based, technology-based real estate brokerage, is reporting that their Redfin Homebuyer Demand Index (HDI) for the week ending November 14, 2021 hit a new all-time high since at least 2017. The HDI is a seasonally adjusted measure of requests for home tours and other home-buying services.

According to Q3 2021 data from the U.S. Census Bureau’s Quarterly Starts and Completion by Purpose and Design, with further analysis provided by the National Association of Home Builders (NAHB), the median single-family homes’ livable space increased to 2,337 square feet. The average (mean) square footage of a new-single-family homes increased to 2,541 square feet.

On Monday (11-22-21), The National Association of Realtors® (NAR) reported that total existing home sales (completed transactions for single-family homes, townhomes, condominiums, and co-ops) increased 0.8% month-over-month in October to a seasonally adjusted rate of 6.34 million homes. This marks the second consecutive month of growth.

Data from the U.S. Census Bureau’s Quarterly Starts and Completions by Purpose and Design, with further analysis provided by the National Association of Home Builders (NAHB), reveals that custom home building (homes not intended for sale) in Q3 2021 matched the best quarter for construction starts since the spring of 2008.