Surging Lumber Prices Weigh on U.S. Homebuilding

Reuters, May 18, 2021–Lucia Mutikani
“Builders are delaying starting new construction because of the marked increase in costs for lumber and other inputs,” said Mike Fratantoni, chief economist at the Mortgage Bankers Association in Washington. “These supply-chain constraints are holding back a housing market that should otherwise be picking up speed, given the strong demand for buying fueled by an improving job market and low mortgage rates.”