Lumber and 30 year Mortgage – weekly scale: FRED 30 year rates lag most mortgage rates already above 5%. It has been since 2018 since rates were above 5% and lumber was sub 300.00. High priced lumber (any high priced commodity) will eventually correct itself. High prices cure high prices. Now the pinch is on and rates are reacting. Cost of money is no longer viewed as cheap. This could/should accelerate the cause and effect of high prices cure high prices.
Support for lumber is the 800-820 area. Below look for the trend to remain down with continued support at 600 and the 460 area. Risk is 360-380
Support for lumber is the 800-820 area. Below look for the trend to remain down with continued support at 600 and the 460 area. Risk is 360-380
Comment:
Still looking for 360-380 area. Mortgage rates continue higher as well
Trade closed: target reached:
360 target was filled and Lumber bounced above 500 then down again. Inflation is still alive. It might be hard for lumber to move below 360...
