Lumber rebounds on hopes of higher demand

Trading Economics
June 12, 2024
Category: Finance & Economics
Region: United States

Lumber prices rebounded toward $500 per thousand board feet, moving away from the eight-month low of $488 observed from June 4th as the latest US data lifted the demand outlook. Softer-than-expected US inflation data, which bolstered expectations for multiple Federal Reserve rate cuts this year, added further optimism for reduced mortgage rates amid a sharp decline in US Treasury yields. Still, housing starts continued to struggle amid high rates and home prices continue to weigh on home builders. Mortgage rates remained above 7% for over two months, while building permits in the US sank for a second straight month in April, limiting the outlook for wood and housing construction materials.

Read More