On Tuesday (7-20-21), The U.S. Census Bureau reported that privately‐owned housing starts in June were at a seasonally adjusted annual rate (SAAR) of 1,643,000. This is 6.3% above the revised May rate of 1,546,000 and is 29.1% above the June 2020 rate of 1,273,000.
Wood Markets News
Mortgage Applications for New Home Purchases Drop Year-Over-Year and Month-Over-Month in June 2021
The Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for June 2021 reports that mortgage applications for new home purchases declined -23.8% when compared to June 2020 and by 3% when compared to May 2021.
National Lumber and Building Materials Association Participated in White House Supply Chain Summit
At the invitation of The White House and Biden Administration, the National Lumber and Building Material Dealers Association (NLBMDA) participated in a discussion on Friday, July 16, 2021 regarding concerns about ongoing lumber pricing volatility and other home building material supply chain issues.
Shares of Mortgages in Forbearance Decline for 20th Consecutive Week in the Week Ending July 11, 2021
The latest Mortgage Banker Association’s (MBA) Forbearance and Call Survey reports that the total number of loans now in forbearance decreased by 26 basis points from 3.76% of servicers’ portfolio volume in the prior week to 3.50% as of July 11, 2021. According to MBA’s estimate, 1.75 million homeowners are in forbearance plans.
State Level Construction Employment Analysis for June
A state level analysis of the recent Bureau of Labor Statistics (BLS) nationwide total nonfarm payroll report, provided by the National Association of Home Builders (NAHB), with a focus specifically on the construction sector, reports that in the 48 states that reported construction sector jobs data — which includes both residential as well as non-residential construction — 23 states reported an increase in June compared to May, while 24 states lost construction sector jobs.
Canadian Housing Starts Decline 1.5% Month-Over-Month in June
Canada Mortgage and Housing Corporation (CMHC) reported on Friday (7-16-21) that Canadian housing started moved lower in June. Nevertheless, building activity remains above historic standards and the market remains above anticipations. According to the CHMC, housing starts for June came in at a seasonally adjusted annualized rate of rate of 282,070 units, a -1.5% decrease from 286,296 units in May.
Wildfires Continue to Grow in the Western U.S., Destroying Everything in their Path
In Oregon on Sunday (7-18-21), the largest wildfire in the U.S. set additional dry forestland areas ablaze. The Bootleg fire, located just north of the California border, is just one of dozens of major blazes that continue to burn across the West, with dangerous fire weather looming over the entire area in the upcoming days.
Fannie Mae’s Economic and Strategic Research Group Updates Economic Outlook for Full-Year of 2021
According to Fannie Mae’s Economic and Strategic Research (ESR) Group, expectations for a full-year 2021 real GDP growth are at 7.0% — little changed from their previous outlook. However, meaningful compositional and temporal shifts are now projected for the underlaying sources of economic growth.
Builder Confidence in Newly Built Single-Family Homes Declines 1-point in July
The National Association of Home Builders (NAHB) / Wells Fargo Housing Market Index (HMI) is reporting that builder confidence in the market for newly built single-family homes declined 1-points to a reading of 80 in July. This is its lowest level since August of 2020.
Treasury Yields Start the Week of July 19, 2021 Lower
On Monday, the yield on the benchmark 10-year Treasury note fell 11 basis points to 1.189% (its lowest level in five months) at around 4:00 p.m. ET. The yield on the 30-year Treasury bond slid 11 basis points to 1.82%.