Lumber prices fell by 22% in March as high mortgage rates cool off US housing market

Posted on March 28, 2022   |  

US lumber futures fell by 22% to $1,054 from their early March high of $1,357 per thousand board feet. 

February home sales fell annually by 6% to a seasonally adjusted annual rate of 772,000. 

The decline in new home sales is due to a surge in mortgage rates as the average traditional 30-year fixed mortgage rate soared to 4.72%, which is a quick rise since the Federal Reserve began its cycle of raising interest rates last week.