Citing significant supply chain challenges and transportation backlogs in Western Canada, the result of extreme wildfire conditions, Canfor Corporation announced on Tuesday (7-20-21) afternoon that it will be curtailing approximately 115 million board feet of production capacity at its Canadian sawmills during Q3.
Wood Markets News
Loggers Relief Act to Provide $200 Million to Maine Logging and Trucking Businesses
The Loggers Relief Act, which was co-authored by Republican U.S. Senator Susan Collins of Maine and Democratic U.S. Representative Jared Golden, also of Maine, is making $200 million available for logging businesses that have suffered losses to due to the COVID-19 pandemic.
Canadian Home Prices Increase 16% Year-Over-Year in June — Largest 12-month Gain on Record
According to the Teranet National Bank’s Canadian Home Composite Price Index (HCPI), Canadian home prices increased in June, marking the largest 12-month gain on record as prices climbed in all 11 markets. The HCPI was up 16% year-over-year, beating the 14.2% rise of June 2017.
Uruguay Receives Investment for Innovation in its Timber Industry
Acquiring 100% ownership of Frutifor Lumber Company (FLC), a sawmill located in Tacuarembó, US businessmen Mark Crandall, founder of PostScriptum, a private equity firm specializing in renewable energy and Matías Abergo of Uruguay, the CEO and co-founder of Enkel Group, a company dedicated to the development and construction of architectural projects, covering different scales and technologies, confirm the arrival of Arboreal.
Mortgage Applications Declined in the Week Ending July 16, 2021
According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey, for the week ending July 16, 2021, the Market Composite Index — a measure of mortgage loan application volume — decreased -4.0% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased -20% compared with the previous week.
Housing Starts Move Higher in June; Permits and Completions Trend Lower
On Tuesday (7-20-21), The U.S. Census Bureau reported that privately‐owned housing starts in June were at a seasonally adjusted annual rate (SAAR) of 1,643,000. This is 6.3% above the revised May rate of 1,546,000 and is 29.1% above the June 2020 rate of 1,273,000.
Mortgage Applications for New Home Purchases Drop Year-Over-Year and Month-Over-Month in June 2021
The Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for June 2021 reports that mortgage applications for new home purchases declined -23.8% when compared to June 2020 and by 3% when compared to May 2021.
National Lumber and Building Materials Association Participated in White House Supply Chain Summit
At the invitation of The White House and Biden Administration, the National Lumber and Building Material Dealers Association (NLBMDA) participated in a discussion on Friday, July 16, 2021 regarding concerns about ongoing lumber pricing volatility and other home building material supply chain issues.
Shares of Mortgages in Forbearance Decline for 20th Consecutive Week in the Week Ending July 11, 2021
The latest Mortgage Banker Association’s (MBA) Forbearance and Call Survey reports that the total number of loans now in forbearance decreased by 26 basis points from 3.76% of servicers’ portfolio volume in the prior week to 3.50% as of July 11, 2021. According to MBA’s estimate, 1.75 million homeowners are in forbearance plans.
State Level Construction Employment Analysis for June
A state level analysis of the recent Bureau of Labor Statistics (BLS) nationwide total nonfarm payroll report, provided by the National Association of Home Builders (NAHB), with a focus specifically on the construction sector, reports that in the 48 states that reported construction sector jobs data — which includes both residential as well as non-residential construction — 23 states reported an increase in June compared to May, while 24 states lost construction sector jobs.