The Conference Board released today (3-18-22) the Leading Economic Index® (LEI) for the U.S. in February 2022. According to the report, the LEI for the U.S. increase by 0.3% in February to 119.6 (2016=100), following a -0.5% decrease in January and a 0.8% increase in December.
Wood Markets News
New Home Purchase Mortgage Applications Decline Month-Over-Month and Year-Over-Year in February
According to the Mortgage Bankers Association’s (MBA) Builder Application Survey (BAS) for February 2022, mortgage applications for new home purchases declined -3.9% year-over-year. When compared to January 2022, applications decreased by -1.0%. This change does not include any adjustment for typical seasonal patterns.
Canadian Pacific Railway Threatens to Lock Out Employees in Ongoing Labor Dispute
The Canadian Pacific Railway has threatened to lock out employees starting on March 20, 2022, if the union representing train conductors and engineers fails to negotiate a new contract or agree to binding arbitration. CP has been in contract discussions/mediation with the Teamsters Canada Rail Conference since September 2021.
Versowood Group to Purchase Kissakoski Sawmill from Veisto Oy
Versowood Group, Finland’s largest private sawmill and processor, has announced that it has entered into an agreement to purchase the business, equipment, and buildings of the Kissakoski sawmill owned by Veisto Oy. The transaction expected to be completed and close by July 2022.
Housing Starts and Completions Improve Month-Over-Month, but Building Permits Lag in February 2022
The U.S. Census Bureau reported on Thursday (3-17-22) that privately‐owned housing starts in February 2022 were at a seasonally adjusted annual rate (SAAR) of 1,769,000. This is 6.8% above the revised January estimate of 1,657,000 and is 22.3% above the February 2021 rate of 1,447,000.
Potential Solution to UK’s Housing Shortage: Offsite Timber Construction With OSB Panels
Members of the UK’s House of Commons recently received a research briefing on ways to address the growing housing shortage in England. Members were told that an estimated 340,000 new homes would be needed each year to meet the growing demand. Offsite timber frame construction could be the solution for housebuilders.
Mortgage Rates Climb Above 4% in the Week Ending March 17, 2022
Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending March 17, 2022. The PMMS reports that the 30-year fixed-rate mortgage averaged 4.16% with an average 0.8 point, up from last week when it averaged 3.85%. A year ago, at this time, the 30-year FRM averaged 3.09%.
Weekly Jobless Claims Decline in the Week Ending March 12, 2022
The U.S. Department of Labor is reporting that an additional 214,000 Americans made their initial filing for unemployment benefits during the week ending on Saturday, March 12, 2022. This is a decrease of 15,000 from the previous week’s revised level.
Mosaic Forest Management to Defer Timber Harvesting on Some of its Timberland, Opting to Sell Carbon Credits Instead
Mosaic Forest Management, which oversees forest holdings for two B.C. companies—TimberWest Forest Corp. and Island Timberlands L.P.—which are owned by three large pension plans announced on Wednesday that it will defer the harvesting of 40,000 hectares of “old forests” on Vancouver Island and Haida Gwaii for at least 25-years.
Britton Lumber Company’s Eastern White Pine Mill in Bath, New Hampshire to be Expanded and Upgraded
Britton Lumber Company has announced their intention to expand their Eastern White Pine sawmill facility located in Bath, New Hampshire in August 2022. The mill currently is approximately a 30,000 square foot facility producing approximately 9 million board feet annually.