Are Falling Lumbers Prices Signaling a Housing Slowdown? | Presented by CME Group

Market Trends & Lumber Prices - Lumber futures have decreased by 24% since August [1] - The decline in lumber prices historically signals a potential slowdown in the US housing market [2] - Lumber producers hope lower interest rates will revive home building and remodeling markets [2] Housing Market & Construction - Builders are scaling back new construction due to excess inventory and economic uncertainty [2] - Depressed new home buying activity is attributed to affordability challenges [2] - Supply is outpacing demand, leading builders to likely cut back on delivering new homes [2] Potential Recovery - A potential drop in mortgage rates could spur a rise in demand and new construction [3] - Increased demand and new construction could stabilize lumber prices [3]