Homebuilders

Despite lean inventory, efforts by builders to boost production have been hindered by supply-chain challenges, soaring materials costs and difficult hiring conditions.

The creation of single- and multifamily inventory occurred at the fastest pace seen since 2006 in February, but housing market transactions slowed as rates rose.

The builder reported better-than-expected quarterly orders as the record shortage of existing-home listings pushed buyers toward newly built properties.

The record in builder borrowing from banks stands in contrast to a period of pandemic-related disruption, but volume will likely remain below market demand unless President Biden can fulfill promises to reduce supply-chain disruptions.

Sales of new U.S. homes retreated in January after a flurry of purchases at the end of 2021, indicating a jump in mortgage rates may be starting to restrain demand.

The estimated rate of annual sales also dropped in January to its slowest pace since July.

New U.S. home construction fell in January for the first time in four months, indicating pandemic-related labor absences and winter weather tempered recent progress on building activity.

Lumber futures have recouped recent losses and risen by the exchange maximum of $45 for six consecutive sessions, touching $1,204.90 per 1,000 board feet Wednesday, the highest in three weeks.

Makers of everything from decks to porches and outdoor lighting are lagging behind the broader stock market this year, joining a selloff in homebuilder shares as casualties of a rising-rate environment.

While low interest rates and low existing-home supply are behind much of the growth, the single-family rental market is also fueling demand.