Construction spending totaled $1.599 trillion in 2021, an increase of 8.2 percent from the $1.470 trillion spent in 2020. Residential spending, both public and private, was the only sector to post a double digit increase at 22.9 percent, while several categories saw spending plummet. Construction categorized as public safety took the worst hit , down 33.0 percent year-over-year, and office construction fell by 32.0 percent. Conservation and development projects and religious construction declined by 14.9 percent and 12.5 percent, respectively. The U.S. Census Bureau said spending for all types of construction during December was at a seasonally adjusted annual rate of $1.640 trillion, a 0.2 percent increase from November and up 9.0 percent from the prior December. On a non-adjusted basis, the month’s expenditures totaled $123.582 billion, down from $137.573 billion in November. Privately funded construction rose 0.7 percent from November’s pace to a seasonally adjusted $1.293 trillion in December. This was 12.7 percent higher than the previous December’s rate and again, it was residential construction driving the numbers. That spending was at a $810.288 billion, up 1.1 percent and 15.0 percent from the two earlier periods. The non-seasonally adjusted numbers for residential construction, were $58.962 billion spent in December and $67.571 billion in November. National Association of Home Builders (NAHB) analyst Na Zhao attributed the monthly gains to “the strong growth of spending on single-family and multifamily construction, while spending on improvements slipped. Single-family construction spending increased to a $435 billion annual pace in December, up by 2.1 percent over the upwardly revised November estimates.” Multifamily construction spending rose 0.4 percent while spending on improvements slipped 0.1 percent in December on top of an 0.8 percent dip the prior month. Zhao said home building is still facing supply chain issues, which means industry is dealing with rising materials costs as well as ongoing labor issues.
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February 2, 2022
Housing News
Construction spending totaled $1.599 trillion in 2021, an increase of 8.2 percent from the $1.470 trillion spent in 2020. Residential spending, both public and private, was the only sector to post a double digit increase at 22.9 percent, while seve... (read more)
Housing News
Mortgage volume during the week ended January 28 recovered from a 7 percent decline the previous week to post the largest non-holiday related gain since the last week of March 2020. The Mortgage Bankers Association (MBA)) said its Market Composite In... (read more)
Rob Chrisman
Here we are at Groundhog Day. A rodent predicting the weather has little tie-in with the 1993 movie of repeating the same day over and over again. Locks are certainly not repeating 2021 levels for January, with initial anecdotal pipeline numbers down... (read more)
Mortgage Rates
After a month like January (where rates rose very quickly), we'll take any victory we can get.  In today's case, that means the celebration of rates that are still very high compared to most of the past 2 years, but modestly lower compared to the past few days.  With today's improvement, you'd need to go back to last Tuesday to see anything lower... (read more)
MBS / Treasuries
Bonds Uninterested in Huge ADP Miss; Another "Inside Day" For the third day in a row now, bonds spent a decent amount of time trading in stronger and weaker territory.  Today's version was mostly stronger, but not strong enough for yields or MBS prices to get to better levels than those seen yesterday.  In ... (read more)