Statistics Canada (StatsCan) reported on Friday (7-30-21) that real gross domestic products (GDP) in Canada contracted -0.3% in May, following a -0.5% drop in April, and that total economic activity was approximately -2% below February 2020’s pre-pandemic level. Preliminary information indicates an approximate 0.7% increase in real GDP for June.
News in end use
U.S. Consumer Sentiment Declines in July as Inflation Worries Continue to Grow
The University of Michigan today (7-30-21) released its second and final reading of Consumer Sentiment for July. According to the survey, U.S. consumer sentiment fell to a five-month low in July amid lingering concerns about inflation. The University of Michigan’s Consumer Sentiment Index (MCSI) fell to a final reading of 81.2, the lowest level since February, from June’s final level of 85.5.
Construction Employment Has Remained Flat or Declined in 101 Metro Areas Since February 2020
According to an analysis provided by the Associated General Contractors of America (AGC), taken from data recently released the Department of Labor, construction employment declined or stagnated in 101 metro areas between February 2020 — the month prior to the start of the COVID-19 pandemic — and June of 2021.
Pending Home Sales Decline -1.9% Month-Over-Month and Year-Over-Year in June
The National Association of Realtors® (NAR) is reporting that their Pending Homes Sales Index (PHSI) — which is based on signed real estate contracts, not actual closings, for existing single-family homes, condos, and co-ops — declined -1.9% to a reading of 112.8 in June. This after recording a notable 8.0% increase in May.
U.S. Real Domestic Product “Advance” Estimate for Q2 2021: Up 6.5% on an Annual Rate
According to the “advance” estimated released today (7-29-21) by the Bureau of Economic Analysis (BEA), the U.S. real gross domestic product (GDP) increased at an annual rate of 6.5% in Q2 of 2021. In Q1 of 2021, the GDP increased by 6.3% (revised).
Weekly Jobless Claims Decline in the Week Ending July 24, 2021
The U.S. Department of Labor is reporting that an additional 400,000 Americans made their initial filing for unemployment benefits during the week ending on Saturday, July 24, 2021 — a decrease of 24,000 from the previous week’s revised level.
Canadian Consumer Price Index Rises 3.1% Year-Over-Year in June, Falls Month-Over-Month
Statistics Canada (StatsCan) reported today (7-28-21) that The Consumer Price Index (CPI) rose 3.1% on a year-over-year basis in June, down from a 3.6% gain in May. As a result of price increases in June 2020, base-year effects had a downward impact on consumer inflation, contributing to the slowdown in June 2021.
Affordability Continues to Challenge Homebuyers
On Tuesday (7-27-21), the First American Financial Corporation — a leading global provider of title insurance, settlement services, and risk solutions for real estate transactions headquartered in Santa Ana, California — released the May 2021 First American Real House Price Index (RHPI).
U.S. Census Bureau Reports Home Ownership Rate in Q2 2021 at 65.4%
On Tuesday (7-27-21) the U.S. Census Bureau released the results of Bureau’s Q2 2021 Housing Vacancy Survey. According to the survey, the national vacancy rates in Q2 of 2021 was 6.2% for rental housing and 0.9% for homeowner housing. The rental vacancy rate was 0.5% points higher than the rate in Q2 2020 (5.7%) and -0.6% points lower than the rate in Q1 2021 (6.8%).
Mortgage Applications Increase in the Week Ending July 23, 2021
According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey, for the week ending July 23, 2021, the Market Composite Index, a measure of mortgage loan application volume, increased 5.7% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 6% compared with the previous week.