We’ve seen some of the lowest interest rates in recent history over the past few months in the US as a response to the fragility in the economy.
Low-interest rates for both home mortgages and new construction financing led to a boom in the building and remodeling industries when businesses opened their doors in June.
The boom in the building/remodeling industries turned the tables on the lumber industry. Mills and other processing facilities went from having an excess supply of wood to a shortfall in what seemed like a moment’s notice.
Ultimately, as the demand for lumber continued to increase over the past few months, supply has not been able to catch up, resulting in an increase in lumber’s cost by 340% or more in particular locations.