According to the latest statistics coming from the 2019 American Community Survey, more young people are entering the construction trades. The share of workers under the age of 25 reached 10.8% in the construction industry, compared to only 9.7% in 2015. As a result, the median age of the construction workforce is 41, a year younger than in 2018.
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Shares of Mortgages in Forbearance Post Slight Decline in the Week Ending July 25, 2021
The latest Mortgage Banker Association’s (MBA) Forbearance and Call Survey reports that the total number of loans now in forbearance decreased by 1 basis point from 3.48% of servicers’ portfolio volume in the prior week to 3.47% as of July 25, 2021. According to MBA’s estimate, 1.74 million homeowners are in forbearance plans.
Private Residential Construction Spending Gains Reported in June
Further analysis of the U.S. Census Bureau’s Construction Spending data for June, provided by the National Association of Home Builders (NAHB), show that total private residential construction spending rose 1.1% in June to a seasonally adjusted annual rate (SAAR) of $763.4 billion. Total private residential construction spending was 29.3% higher than a year ago.
June 2021 Construction Spending Up 8.2% Year-Over-Year and 0.1% Month-Over-Month
The U.S. Census Bureau has announced that total construction spending during June 2021 was estimated at a seasonally adjusted annual rate (SAAR) of $1,552.2 billion, 0.1% above the revised May estimate of $1,551.2 billion. The June figure is 8.2% above the June 2020 estimate of $1,435.0 billion.
Redfin Sees Further Evidence of U.S. Housing Market Cooling
Redfin, the Seattle-based technology-powered real estate brokerage, in its most recent report covering the four-week period ending July 25, 2021, is pointing to a cooling in the housing market. As evidence, Redfin points to pending homes sales posting their smallest year-over-year increase, just 7%, a level last seen in June 2020.
The FHFA and FHA Announce Extension of the COVID-19 Eviction Moratorium on Real Estate Owned Properties Through September 30, 2021
On Thursday (7-30-21), and one day prior to their scheduled expiration, The Federal Housing Finance Agency and the Federal Housing Administration announced that they would both be extending their eviction bans on borrowers of foreclosed properties until September 30, 2021. Other federal agencies are expected to follow suit.
Canada’s Industrial Product Price Index Flat in June Due to Lumber and Other Wood Products Price Declines
Statistics Canada (StatsCan) today (7-30-21) released the Industrial Product Price Index (IPPI) for June. The IPPI was unchanged month-over-month in June and was up 16.8% when compared with June 2020. The Raw Materials Price Index (RMPI) increased 3.9% on a monthly basis in June and was up year-over-year 38.1%.
The Number of Prospective Buyers Turning into Active Buyers Continued to Grow in Q2 2021
Further analysis of the National Association of Home Builders Housing Trend Report (HTR) for Q2 of 2021 reveals that of the 17% of American adults considering a future home purchase, 61% have moved beyond planning and are actively searching to find one to buy. This marks the sixth consecutive quarter of growth, a trend that started in Q4 of 2019, when it was at 43%.
Canada’s Gross Domestic Product Contracted -0.3% in May
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.
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.