According to the Mortgage Bankers Association’s Weekly Mortgage Application Survey, for the week ending December 2nd, the Market Composite Index (a measure of mortgage loan application volume) decreased 1.9% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 36.0%.
Wood Markets News
Canfor Announces Temporary Production Curtailments at All Solid Wood Facilities in BC and Alberta
Canfor on Monday announced that due to very weak market conditions, it will be temporarily reducing production through curtailments at all of its solid wood facilities in British Columbia and Alberta. They will begin December 19th and remove approximately 150 million board feet of production in December and January.
Nonresidential Construction Declines for the Fourth Consecutive Month in October
According to an Associated Builders and Contractors analysis of construction spending data published by the US Census Bureau on Thursday, national nonresidential construction declined by 0.3% in October. On a seasonally adjusted annualized basis, nonresidential spending totaled $898.4 billion.
New Zealand Announces Its Forestry and Wood Processing Industry Transformation Plan
New Zealand’s Forestry Minister Stuart Nash announced on Monday the Forestry and Wood Processing Industry Transformation Plan (ITP). Nash says the ITP will increase wood processing in the country and grow a low-carbon, high value timber industry.
Builders Are Dropping Prices and Offering Incentives, but Not Like They Did During the 2007-2008 Crisis
According to analysis by the National Association of Home Builders (NAHB) of its NAHB/Wells Fargo Housing Market Index (HMI), in November, 36% of single-family home builders reported reducing their prices and 59% were offering special sales inducements. The NAHB says that these are paltry when compared to financial crisis of 2007-2008.
Woodgrain, Inc. to Expand Door-Hanging Operation in Rocky Mount, NC
North Carolina Governor Roy Cooper’s office announced on Monday Woodgrain, Inc. that will be expanding its door-hanging operation in Rocky Mount, Nash County. Woodgrain is a family owned and operated vertically integrated manufacturer of moulding, millwork, windows, doors, door jambs, and door frames.
Mortgages Originating in 2022 Are at a Growing Equity Risk, as Home Prices Continue to Correct Lower
Black Knight is reporting in their December 5th mortgage monitor report that the ongoing home price correction is exposing a growing pocket of equity risk concentrated among purchases mortgage originating in 2022. Of all homes purchased with a mortgage in 2022, 8% are not at least marginally underwater.
UC San Diego to Test 10-Story Wooden Tower’s Ability to Withstand Earthquakes
Engineers are putting the finishing touches on a 10-story wood tower at UC San Diego’s outdoor earthquake simulator located in Scripps Ranch. When completed the building will undergo violent shaking to see how well tall timber structures can handle quakes and other natural disasters.
Twin River Paper Announces Sale of Its Plaster Rock, New Brunswick, Sawmill to Groupe Lebel
Twin Rivers Paper Company announced on Friday that it had reached a definitive agreement to sell its softwood lumber mill located in Plaster Rock, New Brunswick, to eastern Canadian lumber manufacturer and North American forest products company Groupe Lebel.
Canadian Lumber Production Rises Month-Over-Month in September
Statistics Canada reported today that lumber production increased 1.9% from August 2022 to 4,341.8 thousand cubic meters in September. However, production was down year-over-year by 6.1%.