Weyerhaeuser Company announced on Thursday (5-19-22) that it had successfully completed the acquisition of 80,800 acres of high-quality timberland located in North and South Carolina from a fund managed by Campbell Global for approximately $265 million. The original announcement of this acquisition was made in April of 2022.
Wood Markets News
Custom Home Building Continued to Grow in Q1 of 2022
According to the latest data from the U.S. Census Bureau’s Quarterly Starts and Completion by Purpose and Design survey, custom home building posted a year-over-year gain for Q1 of 2022. The survey reports that there were 46,000 total custom building starts in Q1 of 2022. This is a year-over-year increase of 28% (Q1 of 2021).
Home Sellers Rushing to Find Buyers as Demand Weakens Further and the Housing Market Cools
Redfin’s Home Buyer Demand Index (HBDI) posted its largest annual decline since April 2020. Still, desirable homes are getting scooped up at a record pace, a median 15 days on market. The HBDI noted that homebuyers continue to pull back in the wake of record-high purchasing costs. Mortgage purchase applications fell to their lowest level since May 2020.
New Home Purchase Mortgage Applications Drop Month-Over-Month & Year-Over-Year in April 2022
According to the April Mortgage Bankers Association’s (MBA) Builder Application Survey (BAS), mortgage applications for new home purchases declined -10.6% year-over-year. Compared to March 2022, applications decreased by -14.0%. This change does not include any adjustments typical seasonal patterns.
Mercer Mass Timber Announces Investment in its Spokane Valley Manufacturing Facility
Mercer Mass Timber LLC., a subsidiary of the Vancouver, British Columbia-based Mercer International Inc., a global producer of market pulp and solid wood products with mills in Canada, Germany, and Australia, announced on Wednesday that it plans to invest $50 million (USD) over the next two years in capital projects at its Spokane Valley mass timber manufacturing facility.
Existing Home Sales in April Decline Month-Over-Month and Year-Over-Year
The National Association of Realtors® (NAR) reported on Thursday that total existing home sales dropped -2.4% in April from March to a seasonally adjusted rate at 5.61 million homes. This marks the third consecutive month of existing home sales declines. Year-over-year, however, sales are down -5.9% (5.96 million in April 2021).
30-Year & 15-Year Mortgage Rates Drift Lower in the Week Ending May 19, 2022
Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending May 19, 2022. The PMMS reports that the 30-year fixed-rate mortgage averaged 5.25% with an average 0.9 point, down from last week when it averaged 5.30%.
The Conference Board Reports U.S. Leading Economic Index® Declines in April 2022
The Conference Board, a non-partisan, not-for-profit think tank founded in 1916, released today (5-19-22) the Leading Economic Index® (LEI) for the U.S. in April of 2022. According to the report, the LEI declined -0.3% to a reading of 119.2 (2016=100), following a 0.1% increase in March and a 0.6% increase in February.
Weekly Jobless Claims Inch Higher in the Week Ending May 14, 2022
The U.S. Department of Labor is reporting that an additional 218,000 Americans (seasonally adjusted) made their initial filing for unemployment benefits during the week ending on Saturday, May 14, 2022. This is an increase of 21,000 from the previous week’s revised level. The 4-week moving average was 199,500.
Privately Owned Housing Starts, Permits, and Completions All Fall Month-Over-Month in April 2022
The U.S. Census Bureau reported on Wednesday (5-18-22) that privately‐owned housing starts in April were at a seasonally adjusted annual rate (SAAR) of 1,724,000. This is -0.2% below the revised March estimate of 1,728,000 but is 14.6% above the April 2021 rate of 1,505,000. Single-family housing starts in April were at a rate of 1,100,000.