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MarketMinute | How Do Lumber Prices Add to the Cost of a New Home?

Feb 17
8:48
AM
Category | Markets in a Minute

  • Minutes from last month's Fed meeting show the Fed is ready to raise policy rates as soon as March to help curb soaring inflation.
  • Retail sales rose 3.8% in January, the most since March, beginning the year strong despite inflation and Omicron.
  • Similar to consumer inflation, which hit its highest level since 1982, January wholesale prices were up a near-record 9.7% year over year.

  • Soaring lumber prices add nearly $19K to the cost of a new home. Though 22% below peak, prices are still about 3 times higher than pre-pandemic levels.
  • Homebuyers facing one of the priciest housing markets in history need larger mortgages. The average purchase loan size has hit a record $453K.
  • Last week’s purchase apps were down only 1% compared to the previous week, though refinance apps have fallen more as rates have risen.

 

 

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