Lumber futures price crash 30% in 2 weeks as rising mortgage rates take some heat out of US housing market

In the week ending January 21, 2022, the price of benchmark softwood lumber item Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$1,220 mfbm, said forest products industry price guide newsletter Madison’s Lumber Reporter. This is up by +$50, or +4.3%, from the previous week when it was $1,170. That week’s price was up by +$417, or +52% from one month ago when it was $803.

However, lumber futures price fell 30% between Dec. 14 and Feb. 1, from $1,338 to $934 per 1,000 board feet as rising mortgage rates help cool down the US housing market. The average 30-year fixed mortgage rate has been surging recently and jumped 50 basis points to 3.55%.