Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending September 30, 2021. The PMMS reports that 30-year fixed-rate mortgage averaged 3.01% with an average 0.7 point, up from last week when it averaged 2.88%. A year ago, at this time, the 30-year FRM averaged 2.88%.
Wood Markets News
Lumber Shortages Threaten to Derail Australia’s Home Building Boom
Australia is facing a lumber shortage, similar to the one that negatively impacted home building in North American earlier this year. According to a report from the Master Builders Australia and Australian Forest Products Association (AFPA), the Land Down Under could be facing a deficit of 250,000 wooden house frame packages over the next 15 years if efforts are not made to plant more trees.
Home Asking Prices Increase to an All-Time High
Redfin, the Seattle-based, technology-powered real estate brokerage, reported on Wednesday (9-29-21) that the asking prices of homes listed for sale increased to an all-time high of 12%. On the other hand, pending home sales were just 4% higher year-over-year, the smallest increase since June 2020.
Weekly Jobless Claims Rise in the Week Ending September 25, 2021 — Third Consecutive Increase
The U.S. Department of Labor is reporting that an additional 362,000 Americans made their initial filing for unemployment benefits during the week ending on Saturday, September 25, 2021. This is an increase of 11,000 from the previous week’s unrevised level.
Georgia-Pacific Announces $120 Million in Additions and Improvements at Pineland Lumber Complex
Georgia-Pacific announced today (9-29-21) that their Pineland Lumber Complex in Texas will undergo $120 million in additions and improvements in an effort to modernize and increase the mill’s overall production capabilities. The modifications include a new sawmill which will replace the existing stud mill that was built in the 1960s.
Pending Home Sales Soar 8.1% Month-Over-Month in August
On Wednesday (9-29-21), the National Association of Realtors® (NAR) reported their Pending Homes Sales Index (PHSI) — which is based on signed real estate contracts, not actual closings, for existing single-family homes, condos, and co-ops — increased of 8.1% in August 2021 to a reading of 119.5.
Canadian Industrial Product Price Index Declines in August — Led by Lower Lumber and Wood Product Prices
Statistics Canada (StatsCan) reported today (9-29-21) that prices for products manufactured in Canada, as measured by the Industrial Product Price Index (IPPI) declined -0.3% month-over-month in August. However, year-over-year (August 2020 to August 2021) they were up 14.3%.
Canada’s Housing Sector Moves from Moderate to a High Degree of Vulnerability in Q2 2021
Canada Mortgage and Housing Corp. (CMHC) on Tuesday (9-28-21) reported that the country’s housing sector moved from a moderate, to a high degree of vulnerability during Q2 of 2021. Montreal, Ottawa, and Toronto markets bear most of the risk.
Demand for Second Homes Declines Month-Over-Month and Year-Over-Year in August
According to a report from Redfin, the Seattle-based, technology-driven real estate company, demand for second homes declined -19.3% year-over-year in August. This marks the third consecutive month of declines. Primary home demand also fell declined in August for the second month in a row, dropping -1% year-over-year.
Mortgage Applications Fall Back in the Week Ending September 24, 2021
According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending September 24, 2021, the Market Composite Index, a measure of mortgage loan application volume, decreased -1.1% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased -1% compared with the previous week.