Paul Jannke, Principle of Lumber for Forest Economic Advisors, says that consumers may see the price of lumber at the retail store level decline considerably in the coming months. This would be after wholesale prices declined approximately 50% in June.
Wood Markets News
Economic Uncertainty and Higher Interest Rates to Slow Commercial and Multifamily Lending in Second Half of 2022
According to the updated baseline forecast released by the Mortgage Bankers Association on Wednesday, total commercial and multifamily mortgage borrowing and lending is expected to decline to $733 billion this year, down 18% from 2021 totals of $891 billion.
Europe is Experiencing a Record Wildfire Year as Climate Conditions Continue to Change
Wildfire conditions in Europe are intensifying, just as Europe experiences an unprecedented heatwave. Fires in parts of France, Spain, and Portugal have already destroyed more land in 2022 than in all of 2021. To date, 517,881 hectares have been destroyed.
Homes Are Taking Longer to Sell Just as Availability Improves and Prices Begin to Soften
Redfin is reporting that in the 4-week period ending on July 17, the typical home spent 19 days on the market. This is just one day longer than during the same period one year ago.
Home Building Construction Times Increased Year-Over-Year in 2021
According to the U.S. Census Bureau’s 2021 Survey of Construction, with further analysis provided by the National Association of Home Builders, the average completion time of a single-family house in 2021 was approximately 8.2 months.
Stz’uminus First Nation and BC Provincial Government Sign New Reconciliation Agreement
The signing of the reconciliation agreement is an incremental step toward the parties’ together identifying potential provincial Crown land for transfer, and a commitment to land transfer agreements as much as $28.5 million. Implementing the agreement will be an immense undertaking over several years.
Fannie Mae’s Economic and Strategic Research Group Downgrades Expectations for GDP Growth in Full-Year 2022 and 2023
Fannie Mae’s Economic and Strategic Research (ESR) Group announced on Wednesday that they were downgrading their expectations for full-year 2022 and 2023 real GDP growth. The ESR indicated that softening consumer spending and downward revision to business inventory investment data amid record inflation and higher interest rates were the cause for the downgrade.
Amid Declining Softwood Lumber Prices, Canada’s Industrial Product Price Index & Raw Materials Price Index Are Trending Lower
Statistics Canada reported on Wednesday that the price of products manufactured in Canada as a measured by the Industrial Product Price Index (IPPI) declined by 1.1% month-over-month in June. This was the first monthly decline in the IPPI since August 2021, when it declined 0.3%.
US Leading Economic Index® Declined Further in June, The Conference Board Reports
The Conference Board released today the Leading Economic Index® (LEI) for the U.S. in June of 2022. According to the report, the LEI for the U.S. declined 0.8% in June, falling to a reading of 117.1 (2016=100). The decrease follows a 0.6% decline in May. The LEI is now down 1.8% over the first half of 2022.
Mortgage Rates Continued to Push Higher in Week Ending July 21, 2022
Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending July 21, 2022. The PMMS reports that the 30-year fixed-rate mortgage averaged 5.54% with an average 0.8 point, up from last week when it averaged 5.51%.