As US mortgage rates hit the highest level in 14 years, lumber prices fell and pulled back from an earlier rally.
The rate on a 30-year fixed mortgage went up 7 basis points from a week ago, according to data from the Mortgage Bankers Association.
The last time a fixed mortgage rate was this high was in 2008.
The all-time high of over $1,700 per thousand board feet was reached in May 2021.
As the housing market slows and the Federal Reserve continues to hike rates, the key building material is under pressure.
The central bank is expected to raise benchmark interest rates next week. The latest inflation report shows that price pressures cooled in August but are still too high for a change of stance.
The price of lumber and other commodities that rely on freight trains could be affected by a strike.
The two rail worker unions are at odds with management over new contracts. There is a chance of the first major railroad union strike in 30 years. Rail is the primary mode of transportation for lumber in the US.
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