US lumber prices grew by over 6% as housing starts grew unexpectedly in August

Posted on September 26, 2022

• In August, housing starts grew by 12.2% to an annual rate of 1.575 million units due to an increase in multifamily projects.
• Lumber prices grew by over 6% to $512.60 per thousand board feet despite new permits for home construction falling by 10% to 1.517 million units last month.
• Borrowing costs have increased as Federal Reserve policymakers will boost rates by 75 basis points for a 3rd meeting to contain inflation.
• As a result, homebuilders' sentiment fell for a 9th straight month in September, the longest stretch of declines on record.

Image: Bloomberg