The plunge in lumber prices is no surprise as builder confidence for newly-built single-family homes posted its 12th consecutive month of declines in December, according to the National Association of Home Builders. Confidence is at its lowest reading since mid-2012.

Besides dismal homebuilder sentiment, housing starts and building permits for November also showed deterioration in the housing industry. The number of housing starts (SAAR) is at the lowest since June 2020.