U.S. homebuilding bounced back in May as lumber prices pulled back from record highs. 

Housing starts rose 3.6% to a seasonally adjusted annual rate of 1.572 million last month, the Commerce Department said on Wednesday. April’s reading was revised lower to 1.517 million from 1.569 million. Economists surveyed by Refinitiv had expected housing starts to rise to 1.63 million.

HOMEBUILDER CONFIDENCE SLIPS TO 10-MONTH LOW AS RISING MATERIAL COSTS WEIGH

Starts surged 50% on a year-over-year basis in May. Homebuilding rose in the Midwest, South and West but fell in the Northeast. 

The slight increase in homebuilding came as lumber prices topped out on May 7 and fell 22% through the end of the month, finishing below where they ended April. A lumber shortage that developed in the aftermath of COVID-19 lockdowns caused the cost of the critical material to soar, resulting in builders putting off projects and losing confidence.        

More in category

3 EV Stocks That Can Survive the Next Market Crash
July 31, 2021The Motley Fool
3 EV Stocks That Can Survive the Next Market Crash
Stock market faces elusive pullback as coronavirus, economic headwinds swirl
July 30, 2021FOX Business
Stock market faces elusive pullback as coronavirus, economic headwinds swirl
CDC releases data that informed its reconsideration of face masks, saying delta variant of COVID means the ‘war has changed’
July 30, 2021MarketWatch
CDC releases data that informed its reconsideration of face masks, saying delta variant of COVID means the ‘war has changed’
One government program cut poverty more than any other this year — and it’s ‘extremely unlikely’ to return any time soon
July 29, 2021MarketWatch
One government program cut poverty more than any other this year — and it’s ‘extremely unlikely’ to return any time soon
Americans aren’t cutting back on spending — even with rising inflation
July 29, 2021MarketWatch
Americans aren’t cutting back on spending — even with rising inflation
Inflation surges again in June, PCE shows, as shortages plague the U.S. economy
July 30, 2021MarketWatch
Inflation surges again in June, PCE shows, as shortages plague the U.S. economy
Interest rates haven’t been this low in 5,000 years
July 30, 2021MarketWatch
Interest rates haven’t been this low in 5,000 years
Apple’s new debt deal could mean more shareholder rewards after blowout earnings
July 29, 2021MarketWatch
Apple’s new debt deal could mean more shareholder rewards after blowout earnings
Opinion: Microsoft’s quarterly results show that growth is nowhere near slowing down
July 28, 2021MarketWatch
Opinion: Microsoft’s quarterly results show that growth is nowhere near slowing down
3 Growing Tech Value Stocks to Buy After Q2 Earnings
July 31, 2021The Motley Fool
3 Growing Tech Value Stocks to Buy After Q2 Earnings
3 E-Commerce Stocks You May Be Underestimating
July 31, 2021The Motley Fool
3 E-Commerce Stocks You May Be Underestimating
A Stock Market Crash Is on the Way: 3 Stocks to Buy When It Happens
July 31, 2021The Motley Fool
A Stock Market Crash Is on the Way: 3 Stocks to Buy When It Happens
4 of the Safest Dividend Stocks That'll Help You Crush Inflation
July 31, 2021The Motley Fool
4 of the Safest Dividend Stocks That'll Help You Crush Inflation
Celebrity chef David Burke working on scholarship program to fill restaurants
July 30, 2021FOX Business
Celebrity chef David Burke working on scholarship program to fill restaurants
Taking Your Portfolio to the Metaverse? Start With These 3 Stocks Justin Pope | Jul 31, 2021
July 31, 2021The Motley Fool
Taking Your Portfolio to the Metaverse? Start With These 3 Stocks Justin Pope | Jul 31, 2021
Some Companies Earn So Much Cash, They're Giving It Away to Stock Owners
July 31, 2021The Motley Fool
Some Companies Earn So Much Cash, They're Giving It Away to Stock Owners
The Stealth Way Social Security Has Been Robbing Seniors of Their Benefits for Years Maurie Backman | Jul 31, 2021
July 31, 2021The Motley Fool
The Stealth Way Social Security Has Been Robbing Seniors of Their Benefits for Years Maurie Backman | Jul 31, 2021
Justice Department says hackers struck 27 US attorneys’ offices around US
July 30, 2021FOX Business
Justice Department says hackers struck 27 US attorneys’ offices around US
Walmart and Disney Join a Growing Group of Businesses Requiring Vaccination
July 30, 2021The NY Times
Walmart and Disney Join a Growing Group of Businesses Requiring Vaccination
The Top 3 Stocks to Buy for August
July 31, 2021Entrepreneur
The Top 3 Stocks to Buy for August
US sets new Cuba sanctions as Biden meets Cuban-Americans
July 30, 2021FOX Business
US sets new Cuba sanctions as Biden meets Cuban-Americans