Statistics Canada (StatsCan) reported today (1-13-22) that investment in building construction increased 1.2% to $18.0 billion (CAD) in November. Every component, except industrial construction, experienced an increase. On a constant dollar basis (2012=100), investment in building construction grew 0.5% to $12.3 billion. Overall, residential construction investment rose 1.5% to $13.1 billion in November.
Wood Markets News
Home Prices Start 2022 at New Record High Levels
Redfin, the Seattle-based, technology-powered real estate brokerage firm, reveals in their latest housing market report (1-13-22) that, during the week ending January 9, 2022, the median home sale price increased year-over-year by 16%, reaching an all-time record high of $365,000. According to Redfin’s Homebuyer Demand Index (HDI), homebuyer activity jumped 9%, while the number of homes for sale fell to a new all-time low within the report’s time frame.
Producer Price Index for Final Demand Increases 0.2% in December
The Bureau of Labor Statistics (BLS) reported today (1-13-22) that the Producer Price Index (PPI) for final demand, seasonally adjusted, increased 0.2% in December. The December rise follows a 1% increase in November and 0.6% increases in October, September, and August. On an unadjusted basis, the final demand index rose 9.7% percent in 2021 — the largest calendar-year increase since data were first calculated in 2010.
Mortgage Rates Climb Higher in Week Ending January 13, 2022
Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending January 13, 2022. The PMMS reports that the 30-year fixed-rate mortgage averaged 3.45% with an average 0.7 point, up from last week when it averaged 3.22%. A year ago, at this time, the 30-year FRM averaged 2.79%.
Weekly Jobless Claims Increase in the Week Ending January 8, 2022
The U.S. Department of Labor is reporting that an additional 230,000 Americans made their initial filing for unemployment benefits during the week ending on Saturday, January 8, 2022. This is an increase of 23,000 from the previous week’s unrevised level. The 4-week moving average was 210,750 — an increase of 6,250 from the previous week’s unrevised average.
U.S. Commerce Department Amends Notice of Final Results of the 2019 Administrative Review of the Countervailing Duty Order
On Thursday, January 6, 2022, the Department of Commerce (DOC) amended its notice of final results of the 2019 administrative review of the countervailing duty (CVD) order. In the amendment, the DOC stated they had incorrectly calculated J.D. Irving and West Fraser’s CVD rates. The new CVD rates are 3.46% and 5.08%, respectively.
Southern Pine Beetle Discovered in Maine, Placing Maine’s Pitch Pine Barrens at Risk
The southern pine beetle, one of the most destructive forest pests in the Southeast U.S., which has already destroyed millions of acres in its native South, has made its way to the State of Maine. The beetle was discovered in Waterboro, Maine last fall, and scientists say the ecosystem of Maine’s pitch pine barrens is now at risk.
Jartek Invest Oy to Provide New Green and Dry Sorting Lines to Segezha Group’s JSC Onezhsky LDK Wood Processing Facility in Arkhangelsk, Russia
Jartek Invest Oy, a leading supplier in Finnish sawmilling technology, has announced that it has just signed a contract to deliver green and dry sorting lines to Segezha Group as part of a large-scale modernization of their JSC Onezhsky LDK wood processing facility in the Arkhangelsk region of Russia. The new lines will make the operation more efficient and help to develop wood processing and improve product quality.
Consumer Price Index Increases 0.5% in December and 7.0% Year-Over-Year
The U.S. Bureau of Labor Statistics (BLS) reported on Wednesday (1-12-22) that the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.5% in December on a seasonally adjusted annual basis. This follows a 0.8% increase in November and a 0.9% increase in October. Over the past 12-months, the all-item index has increased 7.0% before seasonal adjustment — the largest 12-month increase since the period ending June 1982.
Mortgage Applications Increase in Week Ending January 7, 2022
According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending January 7, 2022, the Market Composite Index (a measure of mortgage loan application volume) increased 1.4% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 46% compared with the previous week. The Refinance Index decreased -0.1% from the previous week.