Lumber Drops Toward Two-Year Low
Lumber futures fell below $527 per thousand board feet, retreating toward a two-year low amid persistent weakness in the US housing market. Homebuilder confidence has fallen to its lowest level in 14 years, as high mortgage rates, labor shortages and high construction costs continue to weigh on the sector. Mortgage rates have climbed to 7.4%, their highest level in three years, raising borrowing costs, dampening housing demand and weighing on prices. On the other hand, trade tensions with Canada continue to constrain lumber availability and pressuring prices. Although the US Department of Commerce lowered antidumping and countervailing duties on Canadian softwood lumber to 24.75% from 35.16%, a separate 10% US tariff brings total duties to 34.75%, limiting the potential for a supply recovery. The US Lumber Coalition backed the decision, as forestry groups have long accused Canada of dumping lumber in the US. Conversely, the NAHB has called for a pause on building material tariffs.
Lumber futures fell below $527 per thousand board feet, retreating toward a two-year low amid persistent weakness in the US housing market. Homebuilder confidence has fallen to its lowest level in 14 years, as high mortgage rates, labor shortages and high construction costs continue to weigh on the sector. Mortgage rates have climbed to 7.4%, their highest level in three years, raising borrowing costs, dampening housing demand and weighing on prices. On the other hand, trade tensions with Canada continue to constrain lumber availability and pressuring prices.
Although the US Department of Commerce lowered antidumping and countervailing duties on Canadian softwood lumber to 24.75% from 35.16%, a separate 10% US tariff brings total duties to 34.75%, limiting the potential for a supply recovery. The US Lumber Coalition backed the decision, as forestry groups have long accused Canada of dumping lumber in the US. Conversely, the NAHB has called for a pause on building material tariffs.