State economic growth strengthened in the first quarter of 2026, with real GDP increasing in 46 states and the District of Columbia. According to the Bureau of Economic Analysis (BEA), state-level growth rates ranged from a 4.5% annualized increase in Washington to a 1.6% decline...
As the Iran conflict pushed up energy prices, the Personal Consumption Expenditures (PCE) Price Index—the Federal Reserve’s preferred inflation gauge—accelerated to a three-year high in May. While oil and gasoline prices have declined in recent weeks as planned Strait of Hormuz reopening reduced the risk...
Elevated mortgage rates, rising inflation and economic uncertainty kept many buyers out of the market in May as consumers and builders continue to deal with challenging affordability conditions. While monthly sales activity softened, builders continue to operate in a market characterized by cautious buyers and...
U.S. sawmill production fell in the first quarter, the second consecutive quarter of lower output according to the Federal Reserve G.17 Industrial Production report. Sawmill output has remained largely flat since 2023, after increasing in the post-pandemic period. The utilization rate for sawmills and wood...
State labor market conditions remained mixed in May, with payrolls expanding in many states while job losses were concentrated in a smaller group of states and the District of Columbia (D.C.). Construction employment also continued to grow nationwide, although performance varied considerably across states. In...
Strong labor market growth continued to put pressure on the nation’s housing supply in 2024, as home building activity did not fully keep pace with demand driven by job gains. Comparing net new jobs with prior-year permitting activity helps show whether the pace of housing...
The market value of households’ real estate assets rose to a new high in the first quarter reaching $48.7 trillion, according to the most recent release of U.S. Federal Reserve Z.1 Financial Accounts. This level is 1.7% higher than in the fourth quarter and is...
With a new Fed Chair and plans for evolving operating strategies, the Federal Reserve maintained its target policy rate at the conclusion of the June Federal Open Market Committee (FOMC) meeting. For the fourth consecutive meeting, the FOMC maintained the short-term federal funds rate at...
Housing starts fell sharply in May, driven by a steep drop in multifamily construction. Meanwhile, single-family buildings also slipped amid high interest rates, rising construction costs and ongoing labor shortages. Overall housing starts decreased 15.4% in May to a seasonally adjusted annual rate of 1.18...
Builder sentiment remains subdued as rising material costs, elevated mortgage rates and ongoing affordability challenges continue to strain the housing market. Builder confidence in the market for newly built single-family homes fell two points to 35 in June, according to the National Association of Home...
Through April 2026, residential construction activity remained uneven across housing sectors. Single-family permitting continued to soften compared with a year ago, reflecting persistent affordability challenges and elevated borrowing costs, while multifamily permitting posted solid gains supported by stronger activity in several regions. Regional and state-level...
Wholesale prices of goods used in residential construction rose in May as energy prices continued to climb. In May, residential building material prices, excluding energy, rose at their highest yearly rate since January 2023, as prices were up 4.4% from a year ago and up...
Inflation accelerated to a new three-year high in May, driven by continued increases in energy costs from the Iran war. Energy costs drove more than 60% of the monthly increase, with national gasoline prices jumping more than a dollar since the war began. Energy costs...
A new NAHB study shows that, on average, regulations imposed by government at all levels account for $131,734, or 26.4%, of the final price of a new single-family home built for sale. Of this amount, $46,795 is due to a higher price for the finished...
Existing home sales rose to a five-month high in May as more first-time buyers stepped back into the market. The share of first-time buyer reached 35% in May, the highest since June 2020. However, sales remained weak compared to historical norms, with still-tight inventory continued...
Mortgage application activity declined again in May as higher mortgage rates continued to suppress the market, although adjustable-rate mortgages (ARM) gained some traction. According to the Mortgage Bankers Association’s (MBA) Market Composite Index, a measure of total mortgage application volume, applications fell 5.5% month-over-month in...
Despite rising inflation and ongoing economic uncertainty, the U.S. labor market remained resilient in May. Nonfarm payrolls increased for the third consecutive month, and the unemployment rate held steady at 4.3%. Job gains were concentrated in leisure and hospitality, local government, and health care, while...
Mortgage rates continued to increase in May as inflation accelerated. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.41% in May, up 7 basis points (bps) over April. Since the conflict in the Middle East began, the 30-year mortgage rate has increased by 36...
