Redfin, the Seattle-based technology-powered real estate brokerage, is reporting that in July the median price of a home sold was up nearly 20% year-over-year to a new all-time record high of $385,000. July was the 12th consecutive month of double-digit price gains, which is significant because a year ago the housing market was already in a strong growth phase, after pausing briefly at the onset of the pandemic.
Wood Markets News
Mortgage Delinquencies Decline in Q2 2021
According to the Mortgage Bankers Association’s (MBA) National Delinquency Survey (NDS) for Q2 of 2021, the delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 5.47% of all loans outstanding. The delinquency rate was down 91 basis points from the Q1 of 2021 and down 275 basis points from one year ago.
Builder Confidence in the Market for New Multifamily Housing Declines in Q2 2021
According to the results released by the National Association of Home Builders’ (NAHB) Multifamily Market Survey (MMS), confidence in the market for new multifamily housing decreased in Q2 of 2021. The Multifamily Production Index (MPI), which was generated from the survey dropped 3-points to a reading of 48 compared to the previous quarter.
The Conference Board Reports U.S. Leading Economic Index® Increased in July
The Conference Board, which was founded in 1916 as a non-partisan, not-for-profit think tank, released today (8-19-21) their July 2021 Leading Economic Index® (LEI) for the U.S. According to the release, the LEI (which is based on ten separate components) increased by 0.9% in July to 116.0 (2016 = 100), following a 0.5% increase in June and a 1.2% increase in May.
30-Year Mortgage Rates Adjusts Slightly Lower in the Week Ending August 19, 2021
Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending August 19, 2021. The PMMS reports that 30-year fixed-rate mortgage averaged 2.86% with an average 0.7 point, down slightly from last week when it averaged 2.87%. A year ago, at this time, the 30-year FRM averaged 2.99%.
Fannie Mae Lowers GDP Expectations for Q4/Q4 to 6.3% from 7.0%
The Federal National Mortgage Association, commonly known as Fannie Mae, today (8-19-21) revised their forecast for 2021 real gross domestic product (GDP) lower, from 7.0% to 6.3% on a Q4/Q4 basis, with a partial offsetting upgrade to the 2022 expected growth rate to 3.2% from 2.8%.
Weekly Jobless Claims Continued to Decline in the Week Ending August 14, 2021
The U.S. Department of Labor is reporting that an additional 348,000 Americans made their initial filing for unemployment benefits during the week ending on Saturday, August 14, 2021. This is a decrease of 29,000 from the previous week’s revised level and the lowest level for initial claims since March 14, 2020, when it was 256,000.
Housing Starts Trend Lower in July; Permits and Completions Increase
The U.S. Census Bureau has reported that privately‐owned housing starts in July were at a seasonally adjusted annual rate (SAAR) of 1,534,000. This is -7.0% below the revised June rate of 1,650,000 but is 2.5% above the July 2020 rate of 1,497,000.
Rain, Cooler Temperatures, and High Humidity Levels Offer Short-Term Relief to B.C. Wildfire Firefighters
The Canadian Broadcasting Company (CBC) is reporting today (8-18-21) that a significant increase in fire activity over the weekend caused by gusting winds created challenging conditions for firefighters. However, rain, cooler temperatures, and relatively high humidity levels in parts of B.C.’s Interior has diminished fire behavior in the short term, but the amount of rain received in many areas wasn’t enough to have any lasting effect on the fires, as deep layers in the ground are still dry.
Canadian Consumer Price Index Increases Month-Over-Month and Year-Over-Year
Statistics Canada (StatsCan) reported today (8-18-21) that the Canadian Consumer Price Index (CPI) increased 3.7% on a year-over-year basis in July, up from a 3.1% rise in June. Excluding gasoline, the CPI rose 2.8% year-over-year.