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.
Wood Markets News
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.
The Single-Family Built-for-Rent Sector Continues to Expand as Housing Affordability Declines
According to the U.S. Census Bureau’s Quarterly Starts and Completion by Purpose and Design report for Q1 of 2022, with additional analysis provided by the National Association of Home Builders (NAHB), the single-family built-for-rent sector (SFBFR) continues to expand as housing affordability hurdles continue to increase.
Largest Ever Mass Timber Building Fire Test to Be Conducted This June by Researchers in Ottawa, Canada
In a project to support market acceptance of tall and large mass timber buildings in Canada, the Canadian Wood Council (CWC) has partnered with both federal and provincial governments to conduct a series of five separate fire research burns on a full-scale mass timber structure in Ottawa. The largest burn is scheduled for some time in June.