Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending March 25, 2021. The PMMS reports that 30-year fixed-rate mortgage averaged 3.17% with an average 0.7 point, up from last week when it averaged 3.09%.
Wood Markets News
Even with Increased Production Australian Sawmills Struggle to Keep Up with Soaring Demand
The Australian Forest Products Association (AFPA) continues to reassure builders and homeowners that they are doing everything possible to supply as much construction timber to meet soaring demand. AFPA CEO Ross Hampton said that the domestic timber industry supplies around 80% of the timber used in home construction and has ramped up production to keep up with the record demand.
Bureau of Economic Analysis Revises GDP Higher in Q4 2020 “Third” Estimate
The Bureau of Economic Analysis (BEA) released today (3-25-21) their “third” estimate of real gross domestic product (GDP) for Q4 of 2020. According to the BEA, the GDP increased at an annual rate of 4.3% in Q4. In Q3 of 2020 the real GDP increased 33.4%.
Survey Finds That Homebuyers are Increasingly Being Drawn to Suburb, Exurb and Rural Areas
The recently released “What Homebuyers Really Want 2021” from the National Association of Home Builders reveals that the COVID-19 pandemic has impacted the housing preferences of nearly one-quarter of all home buyers. Prior to COVID-19, 26% of buyers wanted to buy a home in an outlying suburb; since the beginning of the pandemic, that share is now 30%.
Södra Investing in New Facility CLT Facility in Värö, Sweden
Södra has announced that it is investing in a new facility that will increase its production capacity of timber frame ten-fold. The new facility is being built at their combined facility in Värö, Sweden, where Södra’s first CLT facility is located.
After Eight Straight Months of Declines Mortgage Delinquency Rate Increases in February
Black Knight, a provider of integrated technology, data, and analytics for lenders and services reported on Tuesday (3-23-21), that after eight consecutive months of improvement, the national mortgage delinquency rate rose in February to 6% from 5.85%.
B.C. Government Offers 4 Possible Scenarios for Lake Timber Supply Area Apportionment
The British Columbia government has been in dialogue with stakeholders over four possible scenarios for the Lake Timber Supply Area (TSA) apportionment. The Annual Allowable Cut (ACC) of timber for the Burns Lake region was reduced by -41% in 2019, from the previous ACC; however, at that point, the apportionment of AAC between timber license holders was not yet made.
Apartment Absorption Rate and Rent Costs Declines As Completion Increase
According to the U.S. Census Bureau’s Survey of Market Absorption (SOMA) the absorption rate of unfinished, unsubsidized apartments (the market share rented out in the first 3-months following completion) fell by -5 percentage points to a reading of 51% in Q3 of 2020, down from 56% in Q3 2019.
Russia Turns to Timber to Ease Reliance on Oil and Natural Gas Exports
Russia is looking for a way to lower its economic reliance on oil and natural gas exports, which currently makes up almost 50% of the country’s total export volume. It is also looking for a way to improve its environmental image in the world as well. Russian timber is preparing to take the lead on both the economic and environmental fronts.
Mortgage Applications Decrease -2.5% in the Week Ending March 19, 2021
According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey, for the week ending March 19, 2021, the Market Composite Index — a measure of mortgage loan application volume — decreased -2.5% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased -2% compared with the previous week.