According to a report released today (6-16-21) by the National Association of Realtors® (NAR) and authored by the Rosen Consulting Group, decades of underinvestment and underbuilding have created a shortage of housing in the U.S. that is more direct than previously anticipated and will require a concerted and long-term nationwide commitment to overcome.
News in end use
Housing Starts Move Higher in May; Housing Permits and Housing Completions Move Lower
The U.S. Census Bureau has reported that privately‐owned housing starts in May were at a seasonally adjusted annual rate (SAAR) of 1,572,000. This is 3.6% above the revised April rate of 1,517,000 and is 50.3% above the May 2020 rate of 1,046,000.
Canadian Home Sales Decline -7.4% Month-Over-Month but Rise 103.6% Year-Over-Year
According to statistics released by the Canadian Real Estate Association (CREA) on Tuesday (6-15-21), Canadian national home sales and new listings were both down in May 2021. National homes sales recorded over the Canadian MLS® system declined month-over-month by -7.4% in May.
Canadian Consumer Price Index Increases 3.6% Year-Over-Year in May
Statistics Canada (StatsCan) is reporting that on a year-over-year basis the Canadian Consumer Price Index (CPI) rose 3.6% in May, up from a 3.4% gain in April. This is largest yearly increase since May 2011. Excluding gasoline, the CPI rose 2.5% year-over-year.
Mortgage Applications Increase 4.2% in the Week Ending June 11, 2021
According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey, for the week ending June 11, 2021, the Market Composite Index — a measure of mortgage loan application volume — increased by 4.2% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 15% compared with the previous week.
Canadian Housing Starts Edge Higher in May
Canada Mortgage and Housing Corporation (CMHC) is reporting that the trend in housing starts was 280,779 units in May 2021, up slightly from 278,462 units in April 2021. This trend measure is a six-month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts.
Softwood Lumber Sends Canada’s Industrial Product Price Index 3.1% Higher in May
Statistics Canada (StatsCan) is reporting that the Industrial Product Price Index (IPPI) is up by 3.1% month-over-month in May, marking the IPPI’s sixth consecutive monthly increase. Year-over-year, the IPPI was up 16.9% — the largest increase since January 1975 when it was up 17.7%.
Builder Confidence in Newly Built Single-Family Homes Declines 2 Points in June
The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) is reporting that builder confidence in the market for newly built single-family homes declined 2 points to a reading of 81 in June. This is its lowest level since August of 2020 and after builder confidence topped at a level of 90 last November.
Producer Price Index for Final Demand Increases 0.8% in May
The Bureau of Labor Statistics (BLS) reported today (6-15-21) that the Producer Price Index for final demand, seasonally adjusted, increased 0.8% percent in May. Final demand prices rose 0.6% in April and 1.0% in March and 0.5% in February.
Shares of Mortgages in Forbearance Decline for Fifteenth Week in a Row in Week Ending June 6, 2021
The latest Mortgage Banker Association’s (MBA) Forbearance and Call Survey reports that the total number of loans now in forbearance decreased by 12 basis points from 4.16% of servicers’ portfolio volume in the prior week to 4.04% as of June 6, 2021. According to MBA’s estimate that still 2 million homeowners are in forbearance plans.