The U.S. Department of Labor is reporting that an additional 360,000 Americans made their initial filing for unemployment benefits during the week ending on Saturday, July 10, 2021 — a decrease of 26,000 from the previous week’s revised level and the lowest level for initial claims since March 14, 2020.
Wood Markets News
Wildfire Burning in the Fremont-Winema National Forest — Currently Largest in the U.S.
According to the National Interagency Fire Center (NIFC), more than 14,000 firefighters and support personnel are attacking fires covering close to a million acres of land. The NIFC is reporting that the largest fire in the United States was incinerating huge swaths of the Fremont-Winema National Forest in southern Oregon.
Associated Builders and Contractors Reports Construction Backlog Indicator Increased to 8.5 Months in June
Associated Builders and Contractors (ABC) reported on Tuesday (7-13-21) that according to its latest ABC member survey conducted between June 20 and July 6, 2021, its Construction Backlog Indicator (CBI) rose to 8.5 months for June. The latest report is 0.5 months higher than the May 2021 report and 0.4 months higher than in June 2020.
Bidding Wars Slow as More Available Homes Hit the Market
According to a recently released report from Redfin, the Seattle-based technology-powered real estate brokerage, the number of offers written by their agents that faced competition declined from 72.1% in May to 65% in June — well below the pandemic peak of 74.1% in April of this year. Nonetheless, that is higher than the 56.6% bidding war rate Redfin saw in June 2020.
Lower Canadian Softwood Lumber Prices Leads to Decline in Canada’s Industrial Product Price Index for June
Statistics Canada (StatsCan) today (7-14-21) released its flash/early estimate of the Industrial Product Price Index (IPPI) for June 2021. A final release will be issued on July 30, 2021. According to the report, the IPPI decreased by -0.4% month over month in June. However, year-over-year, the index was up 16.2%.
Producer Price Index for Final Demand Increases 1.0% in June
The Bureau of Labor Statistics (BLS) reported today (7-14-21) that the Producer Price Index for final demand, seasonally adjusted, increased 1.0% in June. Final demand prices rose 0.8% in May, 0.6% in April, 1.0% in March and 0.5% in February. On an unadjusted basis, the final demand index moved up 7.3% for the 12 months ended in June.
Mortgage Applications Jump 16.0% in the Week Ending July 9, 2021, Ending 2-week Downturn
According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey, for the week ending July 9, 2021, the Market Composite Index — a measure of mortgage loan application volume, which includes an adjustment for the 4th of July holiday — increased 16.0% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased -7% compared with the previous week.
Transport Canada Orders Train Speed Reduction in All Areas with Extreme Fire Danger Risk
Transport Canada has ordered new safety measures for all rail operators nationwide aimed at reducing the risk of wildfires. The order, which went into effect on Sunday, July 11, 2021, will remain in place until October 31, 2021. The order requires railway companies to limit the speed of trains in all areas of the country that are facing extreme fire risk.
Idaho Wildfires Consuming Thousands of Acres of Grass and Forestlands
High temperatures, low humidity levels, and heat lightning have sparked wildfires all across Idaho and they are continuing to grow in size. The fires are burning in both grasslands and forested areas. Idaho News Channel 6 is reporting that there are currently 5-major fires burning in the state. Containment of most these fires is not expected until later in the year.
Canadian Lumber Production Declines -8.2% from March to April, Rises 45.4% Year-Over-Year
Statistics Canada (StatsCan) is reporting that Canadian lumber production by sawmills decreased -8.2% from March 2021 to 5170.3 thousand cubic meters in April 2021. However, production was 45.4% higher than in April 2020.