Dealers reported another week of steady to sneaky strong sales. Dealers are very encouraged by the uptick in May’s Housing Starts and Permits. They also noted the spike in builders confidence that was reported earlier in the week. Respondents believe that both reports indicate that their sales will continue to be steady to strong well into the summer building season. Lumber and panel producers are quoting production anywhere from the week of 6/29, to as far out as the week 7/13. Prices remain in an upward tilt, but prices are showing sign of fatigue and a few negative numbers did surface, on a handful of selected items, over the course of the week. Mills continue to ship behind schedule and now trucking has suddenly tightened in the West Coast and Southern shipping lanes, which has the potential of adding to further delays. Mortgage rates remain near record lows and both Fannie Mae and Freddie Mac are predicting that trend will continue with the potential for even lower rates in the coming weeks and months ahead. The lower mortgage rates will certainly continue to fuel the sales of new and existing home purchases, as well as provide existing homeowners with a refinancing opportunity.
FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.