Lumber futures fell to $527 per thousand board feet, reaching their lowest level in two years, as rising borrowing costs weighed on housing demand. Growing concerns over inflationary pressures and government debt have strengthened expectations of higher-for-longer interest rates and fueled a broader sell-off in the bond market, pushing sovereign yields to their highest levels in over two decades. As a result, mortgage rates climbed to 7.3%, their highest level in three years, further straining an already weak housing market. Although lacking any particular economic significance, economists refer to the 7% threshold as a psychological ceiling.