The University of Michigan today released its Preliminary Consumer Sentiment Index for August. The Index of Consumer Sentiment increased to a reading of 55.1 in August, up from its reading of 51.5 in July. This is a month-over-month increase of 7.0% but down 21.6% year-over-year.
Wood Markets News
Producer Price Index for Final Demand Declines in July—Still Up 9.8% Year-Over-Year
The Bureau of Labor Statistics reported today that the Producer Price Index for final demand, seasonally adjusted, declined 0.5% in July. This drop follows advances of 1.0% in June and 0.8% in May. On an unadjusted basis, final demand prices moved up 9.8% for the 12 months ending in July.
Housing Affordability in Q2 of 2022 Falls to Its Lowest Level Since the Great Recession
According to the latest National Association of Home Builders/Wells Fargo Housing Opportunity Index for Q2 of 2022, increasing mortgage rates, high inflation, low existing inventory, and rising home prices all caused housing affordability to fall to its lowest level since the Great Recession.
Mortgage Delinquency Rates Drop to Their Lowest Level Since 1979 in Q2 of 2022
The Mortgage Bankers Association reported today its National Delinquency Survey (NDS) for Q2 of 2022. According to the NDS, the delinquency rate for mortgage loads on one-to-four-unit residential properties declined to a seasonally adjusted rate of 3.64% of all loans outstanding.
Mortgage Rates Resume Upward Climb in the Week Ending August 11, 2022
Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending August 11, 2022. The PMMS reports that the 30-year fixed-rate mortgage averaged 5.22% with an average 0.7 point, down from last week when it averaged 4.99%. A year ago at this time, the 30-year FRM averaged 2.87%.
Weekly Jobless Claims Increase in the Week Ending August 6, 2022
The US Department of Labor is reporting that an additional 262,000 Americans (seasonally adjusted) made their initial filing for unemployment benefits during the week ending on Saturday, August 6. This is an increase of 14,000 from the previous week’s revised lower level of 248,000. The 4-week moving average was 252,000.
West Fraser Announces Permanent Production Curtailments at Fraser Lake and Williams Lake Sawmills and Quesnel Plywood Mill
West Fraser Timber announced on Tuesday that it is permanently curtailing approximately 170 million board of combined production at its Fraser Lake and Williams Lake sawmill facilities and approximately 85 million square feet of plywood production at its Quesnel Plywood mill.
BC Government Supports ‘Na̱mg̱is First Nation Chip Facility That Will Supply Pulp & Paper Industry
Over the past 3-years, the BC government has provided a $149,500 (CAD) to Atli Resources Limited Partnership (Atli Resources LP), which is the forestry arm of the ‘Na̱mg̱is First Nation. The funds were awarded through FP Innovations, a delivery agent for the Indigenous Forest Bioeconomy Program and the Indigenous Forestry Program.
Houses Are Taking Longer to Sell as US Housing Market Cools
Redfin reported on Tuesday that the share of US homes that were listed for 30 days or more without going under contract increased by 12.5% year-over-year in July. Or, 61.2% of for-sale homes were on the market for at least 30 days, up from 54.4% in July of 2021.
Mortgage Applications Rise in the Week Ending August 5, 2022—Second Consecutive Increase
According to data from the Mortgage Bankers Association’s Weekly Mortgage Application Survey, for the week ending August 5, the Market Composite Index increased 0.2% on a seasonally adjusted basis from one week earlier.