May Housing Starts Surge, Boosting Lumber Prices and Inventory for Buyers and Renters.
Lumber prices rose by up to 3% after US housing starts surged 21.7% in May to 1.63 million units, the biggest increase since January 1990. The surge comes as home builders rush to meet the growing demand of millennial first-time home buyers. Despite elevated interest rates, building permits also increased in May, signaling that high interest rates are being tolerated by potential home buyers. The recent surge in housing starts could ultimately help lower inflation, which would give the Federal Reserve more breathing room in terms of pausing its interest rate hikes.