Ongoing Lumber Market Considerations:
Housing Demand: The housing market is the talk of the town right now. Rapidly soaring interest rates has caused havoc on housing affordability, especially on the first time homebuyers market. Pent up demand from the low supply of housing provides builder confidence that the market is not going to shift overnight, regardless of rates.
Supply Chain Issues: Supply Chain continues to rear its ugly head and data has been captured reflecting extended build times from project starts. You already know that though, don’t you.
Interest Rates: Mortgage interest rates are still rising, rates have moved over 5% now, increasing buyers monthly payments by the hundreds of dollars.
Inflation: Inflation has been felt across the country. We recommend you write your congressman. That’s all we have to say about that.
Truck Transportation: Load rates are 59:1, down from 99:1 last month. A much needed reprieve. Fuel costs continue to be ridiculous. We will see what happens as we move into most of the country’s strongest building season and demand.
Rail Transportation: Service levels are a concern in rail transportation but nonetheless the railcars are still rolling down the tracks. Choo Choo!
OSB Market: Last month we shared that ‘Somethings gotta give, right!’ It gave alright and OSB experienced triple digit declines. Most believe the bottom has arrived and now is a good time to buy for spring.
Plywood: The downward panel market has started to settle. Predictions are pointed towards a quick shift based on seasonal need.