According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey, for the week ending June 24, 2021, the Market Composite Index — a measure of mortgage loan application volume — decreased by 3.1% percent on a seasonally adjusted basis from one week earlier. This week’s results include an adjustment for the Memorial Day holiday.
Wood Markets News
Canfor to Build New State-of-the-Art Sawmill in DeRidder, Louisiana
Canfor Corporation announced today (6-8-21) that it will be investing approximately $160 million USD to construct a new, state-of-the-art sawmill near DeRidder, Louisiana. The facility will have an annual production capacity of 250 million board feet on a two-shift basis and will directly employ about 130 people, plus create significant additional indirect jobs.
Struggles in Japan’s Housing Market Continued in February and March
Japan’s housing market continues to fight an uphill battle, despite some signs of improvement. In February, Japan’s housing starts declined -3.7%, followed by a slight improvement in March of 1.5% to 35,448 units.
Labor Shortages Slow Business Growth in May
The National Federation of Independent Business (NFIB), reported today (6-8-21) that the NFIB Small Business Optimism Index fell -.02 points in May to a reading of 99.6. In May, there was a slight pause in the recovery of small business optimism after steadily improving from January through April 2021. In May a record-high number of business owners (48%) reported unfilled job openings.
Shares of Mortgages in Forbearance Decline for Fourteenth Week in a Row in Week Ending May 30, 2021
The latest Mortgage Banker Association’s (MBA) Forbearance and Call Survey reports that the total number of loans now in forbearance decreased by 2 basis points from 4.18% of servicers’ portfolio volume in the prior week to 4.16% as of May 30, 2021. According to MBA’s estimate, 2.1 million homeowners are in forbearance plans.
U.S. Bureau of Labor Statistics Job Opening and Labor Turnover Survey for April 2021
The U.S. Bureau of Labor Statistics (BLS) today (6-8-21) reported its Job Opening and Labor Turnover Survey (JOLTS) for April 2021. According to the JOLTS report, as of the last business day in April, the number and rate of job openings reached a series high of 9.3 million (+998,000) or +6.0%. Hires were little changed at 6.1 million or +4.2%.
New Brunswick to Hold Timber Royalty Rates at 6-years Ago Levels, While Other Provinces Raise Theirs
Elevated prices for finished lumber and panel products have led several Canadian provinces to raise the timber royalty rates they are charging to lumber manufacturing companies. New Brunswick is not, at least not as of yet. The province instead continues to standby a decision made to keep its royalty rates frozen at levels set 6-years ago by the former government.
Swinerton Mass Timber Brand Transitions to Timberlab
Swinerton Inc., the Portland Oregon based, 100% employee-owned company, has announced that it will be transitioning the Swinerton Mass Timber brand to Timberlab, while reinforcing the company’s general contracting roots and retaining the company’s vision of the mainstream adoption of mass timber construction.
Redfin Sees Potential Early Warning Signs of a Cooling in the Red-Hot Housing Market
Redfin, the Seattle-based technology-powered real estate brokerage, is reporting that in the 4-weeks ending May 30, 2021, both pending sales asking prices began to decline or flatten. Redfin noted that some of the key takeaways for the time period could be potential signs that the housing market might be cooling down.
Buyers Reluctance to Purchase Homes Reported in Fannie Mae’s May Home Purchasing Sentiment Index
According to the latest Fannie Mae Home Purchase Sentiment Index® (HPSI), only 35% of consumers believe now is a good time to buy a home. The HPSI increased by 1.0 points in May to a reading of 80.0. Four of the six HPSI’s components increased month-over-month, most notably the components related to personal finance, as consumers reported a much greater sense of job security and improved household income compared to the same time last year.