Lumber prices hover near recent lows as new home construction sinks and mortgage rates jump to highest since 2008

Construction on new homes fell to the lowest in more than a year as mortgage rates hit a 14-year high.

The average price for a thousand board feet was $569, up less than 1% from the previous day.

As the housing market cools due to higher interest rates, lumber prices have plummeted. The Federal Reserve raised its benchmark rate for the first time in two decades to tame inflation.

The recent rise in interest rates is a stark contrast to the low interest rates of the past.

Mortgage rates have gone up as well, making homes less affordable and making building materials less popular.

The Mortgage Bankers Association said the average 30-year fixed-rate mortgage rose 25 basis points to 5.65% for the week ended June 10. Purchase applications have plummeted from a year ago.

The Census Bureau said that housing starts dropped in May to the lowest rate in more than a year. The amount of permit applications fell to their lowest level in nine months.

According to Insider, 80% of buyers don't think it's a good time to buy a home. Freddie Mac's economist warned that the US housing market could contract as aggressively as it did in 2006