Lumber prices soar 275% in the pandemic, shutting out homebuilders: CNBC After Hours

Real Estate

CNBC.com’s MacKenzie Sigalos brings you the day’s top business news headlines. On today’s show, Diana Olick breaks down how lumber costs are weighing on homebuilders’ confidence levels. Plus, CNBC.com’s Natalie Zhang explains why teens are benefiting from widespread job openings and higher wages. Also on today’s show.

Homebuilder sentiment drops to 10-month low, as construction costs drive prices higher

Builder sentiment in June fell to its lowest level since August, as construction costs pushed new home prices higher, sidelining buyers and making it harder for some builders to get loans.

The National Association of Home Builders/Wells Fargo Housing Market Index dropped 2 points to 81, down from a recent record peak of 90 last November. Anything above 50 is still considered positive.

“Higher costs and declining availability for softwood lumber and other building materials pushed down builder sentiment in June,” said NAHB Chairman Chuck Fowke, a homebuilder from Tampa, Florida. “These higher costs have moved some new homes beyond the budget of prospective buyers, which has slowed the strong pace of home building.”

Producer prices climb 6.6% in May on annual basis, largest 12-month increase on record

Producer prices rose at their fastest annual clip in nearly 11 years in May as inflation continued to build in the U.S. economy, the Labor Department reported Tuesday.

The 6.6% surge was the biggest 12-month rise in the final demand index since the Bureau of Labor Statistics began tracking the data in November 2010.

On a monthly basis, the producer price index for final demand rose 0.8%, ahead of the Dow Jones estimate of 0.5%.

Bitcoin soars above $40,000 after Tudor Jones endorsement, Musk’s about-face on accepting crypto

Bitcoin’s price hopped over $40,000 on Monday following bullish comments by billionaire hedge fund manager Paul Tudor Jones.

“I like bitcoin as a portfolio diversifier. Everybody asks me what should I do with my bitcoin? The only thing I know for certain, I want 5% in gold, 5% in bitcoin, 5% in cash, 5% in commodities,” Tudor Jones said on CNBC’s “Squawk Box” on Monday.

The cryptocurrency began its latest surge on Sunday after Tesla CEO Elon Musk said the electric vehicle maker could accept bitcoin transactions again in the future.

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