Lumber prices below $800 in 2022 as the highest mortgage rates in 13 years stoked housing demand

In 2022, lumber prices fell by6% on Monday to $780 per thousand board feet, which is its lowest level.
Lumber prices are already down 30% year-to-date and fell by13% over the past week but this decline came as mortgage rates soar to 5.27% last week.
The rise in the mortgage rate is higher than the initial rate of 2022 levels (3.11%) and it's not been seen since 2009, which raised the cost of buying a home in the US considerably.
The quick rise in mortgage rates will negatively impact demand in the home building market, which will add the downside pressure on lumber prices.

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