There's no shortage of wood. It's just not moving over the border. The lumber that is being offered is being snapped up. U.S. home construction rose in April for the first time in three months, as builders broke ground on new homes at an annual pace of 1.609 million units last month. That's above the pace of construction last year as new houses are selling at a record rate.
Housing is supported by low mortgage costs.
The average rate on a 1-year adjustable mortgage fell last week to 5.81 percent, down from 5.9 percent the previous week and the lowest in two years, said Freddie Mac, the No. 2 buyer of U.S. mortgages. The rate is the lowest since the last week of May 1999 when it was 5.73 percent. Borrowing costs have fallen as the Federal Reserve reduced interest rates five times this year, most recently Tuesday.