News in end use

A deeper dive into the recent (5-11-21) Bureau of Labor Statistics (BLS) Job Openings and Labor Turnover Survey (JOLTS) provided by the National Association of Home Builders (NAHB) looking specifically at the construction sector reveals that the housing market remains robust, and as a result additional labor is required.

The latest Mortgage Banker Association’s (MBA) Forbearance and Call Survey reports that the total number of loans now in forbearance decreased by 11 basis points from 4.47% of servicers’ portfolio volume in the prior week, to 4.36% as of May 2, 2021. According to MBA’s estimate, 2.2 million homeowners are in forbearance plans.

The U.S. Bureau of Labor Statistics (BLS) today (5-11-21) reported its Job Opening and Labor Turnover Survey (JOLTS) for March 2021. According to the JOLTS report, as of the last business day in March, the number and rate of job openings reached a series high of 8.1 million (+597,000) or +5.3%.

Less than a year ago with the COVID-19 pandemic gripping Canada, the Canadian Mortgage Housing Corporation (CMHC) predicted dire consequences for home prices. Housing prices could plummet, the now former president and CMHC CEO said between 9-18%. History and data have proved that prediction to be incorrect.

The National Association of Home Builders (NAHB) Housing Trends Report (HTP) is reporting that of the 16% of American adults considering a future home purchase in Q1 of 2021, 64% have moved beyond planning and are actively trying to find one to buy. That is up from the comparable 49% share a year ago.

According to the latest National Association of Home Builders (NAHB) / Wells Fargo Housing Opportunity Index (HOI), housing affordability modestly declined during Q1 of 2021. This is the result of rising material costs and supply shortages, along with increased mortgage rates, all of which signaled affordability challenges for the remainder of the year.

The U.S. Bureau of Labor Statistics (BLS) is reporting that total nonfarm payroll employment in April increased by 266,000 following increases of 770,000 in March and 536,000 in February. In April, nonfarm employment was down by 8.2 million, or 5.4%, from its pre-pandemic level in February 2020.

According to a recent survey conducted by the National Association of Home Builders (NAHB), which happens to coincide with start of National Remodeling month in May, confidence in the remodeling market continues to increase. In the survey, 5% of remodelers reported that more than half of their projects in 2020 were a direct consequence of the pandemic.

Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending May 6, 2021. The PMMS reports that 30-year fixed-rate mortgage averaged 2.96% percent with an average 0.6 point, down from last week when it averaged 2.98%.

According to the latest released Job-Cut Report from Challenger, Gray & Christmas (CG&C), Inc, a global outplacement and business and executive coaching firm, planned job cuts announced by U.S.-based employers fell 25% in April to 22,913 from the 30,603 announced in March.