February Construction Spending Partially Driven by Inflation

Total construction spending rose in February to a seasonally adjusted annual rate of $1.704 trillion, a 0.5 percent increase from January and 11.2 percent higher than in February 2021. It was also 13.5 percent above the rate the prior February , just before the pandemic took hold. During the first two months of the year, expenditures total $237.846 billion, 10.4 percent growth compared to the first two months of 2021. Private sector spending rose 0.8 percent to an annual rate of $1.354 trillion, a 14 percent annual increase. As has been the case for months, the increase was driven almost entirely by residential spending which gained by 1.1 percent from January and was 16.6 percent higher on an annual basis. Single-family construction accounted for most of the annual increase, up 20.0 percent, while multifamily was up 7.8 percent. Compared to January, the two construction categories increased by 2.5 percent and 0.1 percent, respectively. [constructionspendingchart] In their analysis of the U.S. Census Bureau report, Wells Fargo economists Mark Vitner, Charlie Dougherty, and Patrick Barley said residential development “continues to be driven by a historic shortfall of existing homes.” They say, however, that the sharp increase in interest rates in recent weeks may cool the robust buyer demand. For the year to date (YTD) privately funded construction expenditures total $193.176 billion. This is a 13.1 percent increase over the spending in the first two months of 2021, and again the growth is primarily due to the residential sector. New single-family spending is up 19.1 percent YDT, and multifamily construction has seen 5.7 percent growth.

April 1, 2022 Download our Mobile App: Download our Mobile App: Housing News February Construction Spending Partially Driven by Inflation Total construction spending rose in February to a seasonally adjusted annual rate of $1.704 trillion, a 0.5 percent increase from January and 11.2 percent higher than in February 2021. It was also 13.5 percent above the rate the prior February , jus... (read more) MBS Commentary MBS Live Morning: Friday Isn't Great So Far, But It Still Fits in Either Narrative Bonds got off to a much weaker start on Friday as "new month, new quarter" tradeflows leave sellers firmly in control. This began right out of the gate in Japan and continued in Europe as EZ inflation hit 7.5% y/y vs 6.6% forecasts. While... (read more) Rob Chrisman AI, Underwriting, WealthBuilder Products; Non-Agency News, Good and Not so Good I think that we can all agree that in 2017 not a single interviewee got the answer correct to, “Where do you see yourself 5 years from now?” Heck, projections and forecasts in the first few months of 2020 didn’t foresee the drop in interest rates and... (read more) Mortgage Rates Lowest Rates in a Week 30 Yr. Fixed Rate 4.88% +0.10% Rate Change Points Mortgage News Daily 30 Yr. Fixed 4.88% +0.10 0.40 15 Yr. Fixed 4.22% +0.09 0.40 30 Yr. FHA 4.44% +0.07 0.00 30 Yr. Jumbo 4.18% +0.03 0.00 5/1 ARM 3.94% +0.03 0.50 Updates Daily - Last Update: 4/1 15 Yr. Fixed Rate 4.22% +0.09% Rate Change Points Freddie Mac 30 Yr. Fixed 4.67% +0.25 0.80 15 Yr. Fixed 3.83% +0.20 0.80 5/1 Yr. ARM 3.50% +0.14 0.30 Updates Weekly - Last Update: 3/31 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 4.80% +0.30 0.56 15 Yr. Fixed 4.01% +0.25 0.55 30 Yr. Jumbo 4.40% +0.29 0.44 Updates Weekly - Last Update: 3/30 MBS / Treasuries MBS Live Morning: Friday Isn't Great So Far, But It Still Fits in Either Narrative UMBS 30YR 3.5 99.83 -0.27 Price / Yield Change MBS UMBS 3.5 99.83 -0.27 UMBS 4.0 101.77 -0.13 GNMA 3.5 100.30 -0.20 GNMA 4.0 101.73 -0.06 Pricing as of: 4/1 5:21PM EST 10 Year US Treasury 2.3913 +0.0461 Price / Yield Change US Treasury 2 YR Treasury 2.467 +0.132 5 YR Treasury 2.569 +0.104 7 YR Treasury 2.511 +0.073 10 YR Treasury 2.391 +0.046 30 YR Treasury 2.440 -0.013 Pricing as of: 4/1 5:21PM EST Latest Video Expect 50 basis point hikes from Fed during next few meetings, says Goldman... March jobs report falls short of estimates as U.S. payrolls rise by 431,000 The 9am Bond Report - March 1, 2022 The 2pm Bond Report - April 1, 2022 Around the Web Reuters U.S. yield curve inverts after strong jobs data; world shares mixed CNBC Opinion: Housing prices are still surging, but a bubble doesn't seem likely Reuters U.S. job growth solid in March; unemployment rate falls to 3.6% CNBC The Fed's preferred inflation gauge rose 5.4% in February, the highest since 1983 Calculated Risk Blog Q1 GDP Forecasts: Barely Positive CNBC The Fed's preferred inflation gauge rose 5.4% in March, the highest since 1983 CNBC ECB will have to 'think again' on policy if outlook deteriorates rapidly, chief economist says cnbc Euro zone inflation hits another record high of 7.5% Reuters As Fed trains sights on inflation, doves fade from view Calculated Risk Blog Construction Spending Increased 0.5% in February CNBC The hot jobs market could mean big gains for March payrolls and wages Calculated Risk Blog March Employment Preview Calculated Risk Blog It is the Change in Monthly Payment that Matters

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