Lumber Prices Record Biggest Weekly Drop Ever

[ICanFixIt]

I wonder how much of that inflated value is in the mortgage, though. How many banks are going to loan money above the appraised value? So if you pay, say, $125K for a house that appraises at $100K, presumably, the bank is going to sell you a mortgage for less than $100K, and you'll have to cough up the difference on your own. As a result, ifwhen the bubble bursts, unless it goes completely nuts, the mortgage shouldn't be as completely upside down as it could've been in '08, when you had lenders selling 30-year mortgages to 90 year old men (a realtor friend of my dad actually saw that one happen)...

The federal Equal Credit Opportunity Act (ECOA) prohibits creditors from discriminating on the basis of race, religion, sex, familial status, national origin, age, and applicant's use of public assistance.

 

[ConstitutionCowboy]

I was in Lowe's yesterday and the 2 X 4's were stacked to the ceiling. I didn't check the prices 'cause I was in a hurry, but the prices will likely have to come back to at least eye level before inventory starts to move somewhere near normal.

woody

 

[rawhide]

The federal Equal Credit Opportunity Act (ECOA) prohibits creditors from discriminating on the basis of race, religion, sex, familial status, national origin, age, and applicant's use of public assistance.

This past winter a friend told me his 90 year old father just financed a new Jeep Grand Cherokee and told him that if he doesn't live long enough to pay for just let it go back.

 

[cowzrul]

My lumber quote last week was $153 without the trusses. Homie is waiting a few months to let the insanity drop.

 

[bigred1]

My lumber quote last week was $153 without the trusses. Homie is waiting a few months to let the insanity drop.

$153!!!

 

[1shott]

I was in Lowe's yesterday and the 2 X 4's were stacked to the ceiling. I didn't check the prices 'cause I was in a hurry, but the prices will likely have to come back to at least eye level before inventory starts to move somewhere near normal.

woody

They are stacked to the ceiling because they are selling like all get out. We have lumber piled everywhere, its flying out the doors as fast as we can get it in. Some folks are buying it even if its out of stock and waiting for the next delivery to come in. These high prices have not stopped a lot of folks from building, those that have the cash are still at it.

 

[trekrok]

Good point, not sure on that.

I honestly hope theres not another bubble like 2008, but I do have a un easy feeling that when the moratorium is lifted on evictions and all that back rent and mortgage payments actually come due its going to get uglier than it has been.

I think I read somewhere that 1 in 5 mortgages were in some type of forbearance. I'm having a hard time squaring that with an overheated housing market.

 

[1shott]

I think I read somewhere that 1 in 5 mortgages were in some type of forbearance. I'm having a hard time squaring that with an overheated housing market.

I know right? its bazzaro world these days,

 

[BobbyV]

They are stacked to the ceiling because they are selling like all get out. We have lumber piled everywhere, its flying out the doors as fast as we can get it in. Some folks are buying it even if its out of stock and waiting for the next delivery to come in. These high prices have not stopped a lot of folks from building, those that have the cash are still at it.

You mean those builders who are upping their costs to account for the increased prices are still buying and building?

 

[1shott]

You mean those builders who are upping their costs to account for the increased prices are still buying and building?

yup.