According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending November 26, 2021, which includes adjustments for the Thanksgiving holiday, the Market Composite Index (a measure of mortgage loan application volume) decreased -7.2% on a seasonally adjusted basis from one week earlier.
Wood Markets News
West Fraser Announces Reduction in Operations at Multiple Locations in Western Canada
West Fraser has announced that while the magnitude and duration of the impact from current weather events remains uncertain, it has reduced operating schedules at multiple western Canadian locations and will continue to make such adjustments as necessary in order to manage inventory levels, raw material supplies and our integrated fiber supply chain.
Construction Loans in Q3 2021 Set Post-Great Recession High
According to analysis provided by the National Association of Home Builders (NAHB), the volume of 1–4-unit residential construction loans made by FDIC-insured institutions increased 6% during Q3 of 2021. The volume of loans rose by $4.9 billion during the quarter.
West Fraser Temporarily Eliminates Weekend Shift at Williams Lake Plywood Mill
According to West Fraser corporate spokesperson Joyce Wagenaar, “As a result of the significant flooding in southern B.C., the province is now facing serious transportation and logistics issues impacting highways, rail, and our ports.” West Fraser’s Williams Lake mills will be operating at its usual Monday through Friday schedules; however, the company is temporarily curtailing its weekend shift at its plywood mill.
U.S. Housing Prices Increased 18.5% Year-Over-Year in Q3 2021
The Federal Housing Finance Agency (FHFA) announced today (11-30-21) their Housing Price Index (HPI) for Q3 2021. According to the report, year-over-year (Q3 2020 – Q3 2021) home prices rose 18.5%. When compared to Q2 of 2021, they were 4.2% higher. FHFA’s seasonally adjusted monthly price index for September was up 0.9% from August.
Canadian Real GDP by Industry Increased 0.1% in September, Held Back by Five Consecutive Months of Construction Declines
Statistics Canada (StatsCan) reported today (11-30-21) that real gross domestic product (GDP) rose 0.1% in September. This occurred as declines in the manufacturing, construction, and retail trades were more than compensated for by expansions in service-producing industries, mining, quarrying, and oil and gas extraction. However, for the fifth consecutive month construction declined, down -0.7% in September.
S&P CoreLogic Case-Shiller National Home Price Index Increases 19.5% Annually in September
According to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, which covers all nine U.S. Census divisions, reported today (11-30-21) that home prices experienced a 19.5% annual gain in September — down from the 19.8% annual gain in August 2021.
Consumer Confidence Declined in November
The Conference Board, a non-partisan, not-for-profit think tank founded in 1916, released today (11-30-21) their Consumer Confidence Index® (CCI) for November 2021. The CCI declined in November following an uptick in October and decreases in August, July, and June. The Index now stands at 109.5 (1985=100), down from 111.6 in October.
Skeena Sawmills Suspends Terrace, B.C. Sawmill Production for One Week Due to Lack of Logs
Skeena Sawmills has announced that they are temporarily suspended operations at their Terrace, B.C. sawmill this week. This is the result of a lack of sufficient log deck to justify operations. The mill is scheduled to re-open next week.
Pending Homes Sales Up 7.5% in October 2021
The National Association of Realtors® (NAR) reported on Monday (11-29-21) that their Pending Homes Sales Index (PHSI) — based on signed real estate contracts, not actual closings for existing single-family homes, condominiums, and co-ops — increased 7.5% month-over-month in October 2021 to a reading of 125.2.