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U.S. lumber prices saw an increase of 26% in October as the housing market cools down

U.S. lumber prices saw an increase of 26% in October as the housing market cools down

Posted on October 25, 2022   |  

  • Lumber prices grew by 26% in October, as the housing market showed further signs of cooling, but the average 30-year fixed mortgage rate hit 6.94%.
  • These higher rates harmed homebuyers buying power and the housing market saw a constant decline in monthly home sales, which affected homebuilders as they delay or cancel projects given the sharp slowdown in demand.
  • The slowdown in housing spilled over into lumber demand as building pulled back and the urge to carry an inventory, at the end-user level, is gone, which is in contrast to a year ago when lumber demand was high that futures prices soared to $1,733 per thousand board feet but today, prices fell by 70% to $534 per thousand board feet.