The great lumber bubble of 2021 has popped. After a jaw-dropping rally this spring, lumber prices have come back down to earth as supply increased, speculative trading action cooled and homebuilding demand eased. Lumber futures have tanked 42% in June alone, on pace for its worst month on record back to 1978. The building commodity is down more than 13% in 2021, headed for the first negative first half since 2015. “This drop suggests that the cause of that inflation—the mismatch of supply and demand—will not last forever,” said Brad McMillan, CIO at Commonwealth Financial Network. …Goldman Sachs analysts said Tuesday their channel checks suggested increasing consumer hesitancy around some home improvement projects given sticker shock from the rapid rise in certain commodity prices this year, notably lumber.