Lumber Futures Fall To New Low Recently

According to the report from Market Insider in May, lumber futures fell as much as 6 percent to below $700 per thousand board feet, its lowest level since November 2021. Quoting data from Finviz, a stock screener for traders, the Insider said that weakness in lumber can be attributed to a sharp rise in mortgage rates, which remain above 5 percent and have led to a slowdown in demand for homes from buyers. 

April's existing home sales fell for the third straight month, dropping 2.4 percent from March levels, and down 5.9 percent from a year ago to a seasonally adjusted annual rate of 5.61 million. Due to the drop in demand, the inventory of unsold existing homes climbed to 1.03 million by the end of April. 

But while the supply of homes is slowly on the rise, home prices are still moving higher, albeit at a slowing pace. The median existing home sale price increased 14.8 percent year-over-year to $391,200, according to data from the National Association of Realtors.

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