US lumber prices on the rise

US lumber prices held above $510 per thousand board feet, trading close to the four-week high of $516 touched on September 17th amid improved demand prospects for building materials. The Federal Reserve delivered an aggressive 50bps rate cut, the first reduction since 2020, raising hopes of lower mortgage rates and stronger housing demand. Consistently, lower bond yields through early September drove the average rate on a 30-year fixed mortgage fell to 6.09%, its lowest since early February 2023. The lower borrowing costs bolstered housing demand, as building permits in the US rose 4.9 ...