MetroIntelligence Economic Update by P. DUFFY
Inflation tracker Producer Price Index up 0.5 percent in April and 11.0 percent year-on-year
The Producer Price Index for final demand increased 0.5 percent in April, following advances of 1.6 percent in March and 1.1 percent in February, and was up 11.0 percent year-on-year. In April, the rise in the index for final demand is primarily attributable to a 1.3-percent advance in prices for final demand goods. The index for final demand construction increased 4.0 percent, while prices for final demand services were unchanged. Prices for final demand less foods, energy, and trade services moved up 0.6 percent in April after increasing 0.9 percent in March, and were up 6.9 percent year-on-year.
Prices of goods and services for residential construction up 19.2 percent and 18.1 percent year-on-year, respectively
The prices of goods used in residential construction ex-energy (not seasonally adjusted) climbed 0.5% in April, following upwardly revised increases of 1.9% and 2.4% in March and February, respectively. Year-over-year, building materials prices are up 19.2% and have risen 35.6% since the start of the pandemic. The price index of services inputs to residential construction registered a similar increase, rising 0.9% in April. However, the index was upwardly revised for March, causing the monthly increase to jump from 3.2% to 6.8% over the month. Year-over-year, the index has increased 18.1% and is up 45.6% since the start of the pandemic.
Commercial & MF mortgage loan originations fall 39 percent in 1Q22, but up 72 percent year-on-year
Commercial and multifamily mortgage loan originations increased 72 percent in the first quarter of 2022 compared to the same period last year, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. In line with seasonality trends, originations during the first three months of 2022 year were 39 percent lower than the fourth quarter of 2021.