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Lumber prices grew by 7% as mortgage rates down for the 1st time in 4 weeks

Lumber prices grew by 7% as mortgage rates down for the 1st time in 4 weeks

Posted on July 11, 2022   |  

  • Lumber prices saw an increase of over 7% to $638 per thousand board feet, which is the biggest daily gain for the essential building commodity.
  • The increase in lumber prices is due to a decline in mortgage rates for the first time in 4 weeks, in which the average 30-year fixed mortgage rate fell 11 basis points to 5.70% over the past week, while the average 15-year fixed mortgage rate dropped 9 basis points to 4.83%.
  • The decline in mortgage rates is due to high inflation and the possibility of an economic recession.
  • This decline in interest rates can reverse the recent slowdown in the home builders market and boost demand for lumber.
  • Lumber prices fell by 63% from their May 2021 high of $1,733 per thousand board feet, and are down 43% annually.

 

 

 

image by msn.com