Lumber prices decline to a new 2022 low as Goldman warns housing market has further room to fall

By Matthew Fox
Business Insider
August 30, 2022
Category: Finance & Economics
Region: United States

Lumber prices fell to a new 2022 low on Tuesday as higher mortgage rates continue to weigh on a slowing housing market. The essential building commodity fell as much as 4% on Tuesday to $465 per thousand board feet, decisively below the low seen in early August of $470.  While the decline in lumber may be seen by some as a positive sign that inflation is continuing to cool, it is also indicative of a housing market slowdown. And Goldman Sachs expects just that… home sales are set to decline further after already cooling significantly since the Fed began its interest rate hikes, which sent mortgage rates soaring above 5%. …The bank expects existing home sales to fall 12% in August, while it expects new home sales to be flat. Home prices have remained relatively resilient even as sales have cooled down. But Goldman expects that to change soon.

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