Lumber prices just hit their lowest point in 9 months as mortgage demand sinks

Lumber prices can't catch a break, having dropped another 4% on Wednesday to hit their lowest level in nine months.

The orderly decline in lumber prices, which have declined in nine of the last 11 weeks, comes as mortgage demand for homes falls to its lowest level in 22 years. That weakness has been driven by a swift rise in mortgage rates, which surged above 5% for earlier this year and haven't budged lower.

A traditional 30-year fixed mortgage saw average interest rates rise to 5.4% over the past week, according to the Mortgage Bankers Association. That has translated into a drop-off in demand as the cost to buy a home has risen considerably due to the higher rates.

Lumber prices are down 50% year-to-date and have fallen 67% from their record high reached last May.

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