According to data from the Mortgage Bankers Association’s Weekly Mortgage Application Survey, for the week ending July 15, 2022, the Market Composite Index (a measure of mortgage loan application volume) decreased 6.3% on a seasonally adjusted basis from one week earlier.
Wood Markets News
Privately-Owned Housing Starts, Permits, and Completions All Lower Month-Over-Month in June 2022
The U.S. Census Bureau reported on Tuesday that privately‐owned housing starts in June were at a seasonally adjusted annual rate of 1,559,000; this is 2.0% below the revised May estimate of 1,591,000 and 6.3% below the June 2021 rate of 1,664,000. Single-family housing starts in June were at a rate of 982,000; this is 8.1% below the revised May figure of 1,068,000.
West Fraser Issues Statement Regarding Recent Media Speculation About CVC Capital & Kronospan’s Interest in Acquiring the Company
Reuters reported on Tuesday (7-19-22) morning that according to a source familiar with the matter, private equity firm CVC Capital and wood panel manufacturer Kronospan have submitted a joint expression of interest in acquiring Canadian lumber company West Fraser Timber Co.
Quatsino First Nation and Western Forest Products Enter Into an Agreement on Shared Forest Resource Opportunities
Building on a Memorandum of Understanding signed in 2020 by Quatsino First Nation, Western Forest Products Inc, and the B.C. Provincial government, Quatsino and Western have entered into an agreement that provides for a joint vision and approach to share opportunities related to forest resources in unceded Quatsino traditional territory.
Mortgage Applications for New Home Purchases Decline Month-Over-Month and Year-Over-Year in June
The Mortgage Bankers Association (MBA) released on Tuesday the results of its Builder Application Survey (BAS) data for June 2022. The BAS reveals that mortgage applications for new home purchases declined 10% month-over-month and 12% year-over-year in June. These changes do not include any adjustments.
Intelligent City Offers Three-Pronged Approach to Sustainable and Affordable Mass Timber Construction
Vancouver, BC-based Intelligent City has been on a quest for over the past ten years to automate the construction of sustainable buildings. Intelligent City offers sustainability and affordability through a three-pronged approach, offering a software platform that designs buildings, an automated manufacturing process, and the use of mass timber.
Shares of Mortgage Loans in Forbearance Decline Further in June, but 405,000 Homeowners Remain in Plans
According to the new monthly Mortgage Bankers Association’s (MBA) Loan Monitoring Survey (LMS), the total number of loans now in forbearance decreased by 4 basis points, from 0.855% of servicers’ portfolio volume in the prior month to 0.81% as of June 30, 2022.
Nationwide Class 1 Freight Railroad Strike Averted; Presidential Emergency Board Created
On Friday, President Joe Biden signed an executive order to establish a Presidential Emergency Board (PEB) to handle an ongoing dispute between the country’s seven major Class 1 freight railroads and their unions over a new labor agreement. The formation of the PEB helped to avert a potential strike that was scheduled to start on Monday.
Canadian Housing Starts Trend Higher in June
According to the latest release from the Canadian Mortgage and Housing Corporation, the trend in housing starts increased from 252,444 units in May to 258,295 units in June, an increase of 5,851 units. This trend measure is a six-month average of the monthly seasonally adjusted annual rate of housing starts in Canada.
Builder Confidence Plummets 12 Points in July
The National Association of Home Builders/Wells Fargo Housing Market Index reported today that builder sentiment in the market for newly built single-family homes tumbled 12 points lower in July to a reading of 55. This marks the seventh consecutive month of declines, and with the exception of April 2020, is the lowest reading since June 2020.