According to the Mortgage Bankers Association’s (MBA) Builder Application Survey (BAS) data for May 2021, mortgage applications for new home purchases decreased -5.9% compared from a year ago. Compared to April 2021, applications decreased by -9%. This change does not include any adjustment for typical seasonal patterns.
Wood Markets News
Harvard Joint Center for Housing Studies Releases 2021 “The State of the Nation’s Housing” Report
A report released on Wednesday (6-16-21) by the Harvard Joint Center for Housing Studies (JCHS), titled “The State of the Nation’s Housing 2021,” reveals that as the U.S. economy continues to recover from the effects of the pandemic, households that weathered the crisis without financial distress are snapping up the limited supply of homes for sale — pushing up prices and further excluding less affluent buyers from homeownership.
The Conference Board Leading Economic Index® for the U.S. Increased in May
The Conference Board, which was founded in 1916 as a non-partisan, not-for-profit think tank, released today (6-17-21) their May 2021 Leading Economic Index® (LEI) for the U.S. According to the release, the LEI (which is based on ten separate components) increased 1.3% in May, following 1.3% in April, and a 1.4% increase in March.
Russia to Build the First New Pulp and Paper Mill in 40-years in the Republic of Karelia
The Russian State Commission for the Development of the Arctic has announced it has approved an investment project for the construction of a new pulp and paper mills (PPM). It will be the first new PPM to be built in Russian in over 40-years.
Structurlam’s Conway, Arkansas Plant Right on Schedule and Budget to Meet Walmart Campus Project
Canadian-based Structurlam Mass Timber Corp. announced in December 2019 that it would invest $90 million to buy, retrofit, and equip a former steel plant in Conway, Arkansas. In a recent interview, Hardy Wentzel, Structurlam CEO is reporting, “We are trending right on track with our project schedule, our budget is working out well, and our staffing plans are where they need to be at this point.”
Metsä Group Selects LSAB Suomi Oy to Deliver Blades to its New Rauma Sawmill in Finland
Metsä Fibre has announced that it has selected long-time partner LSAB Suomi Oy to deliver blades to its new Rauma sawmill in Finland. The value of Metsä Fibre’s Rauma sawmill investment amounts to approximately 200 million Euro, and the new unit will produce around 750,000 m3 of pine sawn timber annually.
Mortgage Rates Move Lower for Second Consecutive Week in the Week Ending June 17, 2021
Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending June 10, 2021. The PMMS reports that 30-year fixed-rate mortgage averaged 2.93% with an average 0.7 point, down from last week when it averaged 2.96%. A year ago at this time, the 30-year FRM averaged 3.13%.
Weekly Jobless Claims Unexpectedly Move Higher in the Week Ending June 12, 2021
The U.S. Department of Labor is reporting that an additional 412,000 Americans made their initial filing for unemployment benefits during the week ending on Saturday, June 12, 2021 — an increase of 37,000 from the previous week’s revised level. The 4-week moving average was 395,00, which is a decrease of 8,000 from the previous week’s revised average.
National Association of Realtors Report Calls for a Once-In-A-Generation Response to U.S. Housing Supply Shortage
According to a report released today (6-16-21) by the National Association of Realtors® (NAR) and authored by the Rosen Consulting Group, decades of underinvestment and underbuilding have created a shortage of housing in the U.S. that is more direct than previously anticipated and will require a concerted and long-term nationwide commitment to overcome.
Housing Starts Move Higher in May; Housing Permits and Housing Completions Move Lower
The U.S. Census Bureau has reported that privately‐owned housing starts in May were at a seasonally adjusted annual rate (SAAR) of 1,572,000. This is 3.6% above the revised April rate of 1,517,000 and is 50.3% above the May 2020 rate of 1,046,000.