On Wednesday (7-21-21), Statistics Canada (StatsCan) revealed new weights for the basket of goods and services in the Canadian Consumer Price Index (CPI), with shifts including a higher weighting for the shelter component as housing prices soar. The previous basket update was based on 2017 purchasing patterns.
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Weekly Jobless Claims Increase in the Week Ending July 17, 2021
The U.S. Department of Labor is reporting that an additional 419,000 Americans made their initial filing for unemployment benefits during the week ending on Saturday, July 17, 2021 — an increase of 51,000 from the previous week’s revised level.
Canadian Home Prices Increase 16% Year-Over-Year in June — Largest 12-month Gain on Record
According to the Teranet National Bank’s Canadian Home Composite Price Index (HCPI), Canadian home prices increased in June, marking the largest 12-month gain on record as prices climbed in all 11 markets. The HCPI was up 16% year-over-year, beating the 14.2% rise of June 2017.
Mortgage Applications Declined in the Week Ending July 16, 2021
According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey, for the week ending July 16, 2021, the Market Composite Index — a measure of mortgage loan application volume — decreased -4.0% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased -20% compared with the previous week.
Housing Starts Move Higher in June; Permits and Completions Trend Lower
On Tuesday (7-20-21), The U.S. Census Bureau reported that privately‐owned housing starts in June were at a seasonally adjusted annual rate (SAAR) of 1,643,000. This is 6.3% above the revised May rate of 1,546,000 and is 29.1% above the June 2020 rate of 1,273,000.
Mortgage Applications for New Home Purchases Drop Year-Over-Year and Month-Over-Month in June 2021
The Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for June 2021 reports that mortgage applications for new home purchases declined -23.8% when compared to June 2020 and by 3% when compared to May 2021.
Shares of Mortgages in Forbearance Decline for 20th Consecutive Week in the Week Ending July 11, 2021
The latest Mortgage Banker Association’s (MBA) Forbearance and Call Survey reports that the total number of loans now in forbearance decreased by 26 basis points from 3.76% of servicers’ portfolio volume in the prior week to 3.50% as of July 11, 2021. According to MBA’s estimate, 1.75 million homeowners are in forbearance plans.
State Level Construction Employment Analysis for June
A state level analysis of the recent Bureau of Labor Statistics (BLS) nationwide total nonfarm payroll report, provided by the National Association of Home Builders (NAHB), with a focus specifically on the construction sector, reports that in the 48 states that reported construction sector jobs data — which includes both residential as well as non-residential construction — 23 states reported an increase in June compared to May, while 24 states lost construction sector jobs.
Canadian Housing Starts Decline 1.5% Month-Over-Month in June
Canada Mortgage and Housing Corporation (CMHC) reported on Friday (7-16-21) that Canadian housing started moved lower in June. Nevertheless, building activity remains above historic standards and the market remains above anticipations. According to the CHMC, housing starts for June came in at a seasonally adjusted annualized rate of rate of 282,070 units, a -1.5% decrease from 286,296 units in May.
Wildfires Continue to Grow in the Western U.S., Destroying Everything in their Path
In Oregon on Sunday (7-18-21), the largest wildfire in the U.S. set additional dry forestland areas ablaze. The Bootleg fire, located just north of the California border, is just one of dozens of major blazes that continue to burn across the West, with dangerous fire weather looming over the entire area in the upcoming days.