Pinehurst, NC–The Appalachian Lumbermen’s Club learned that low mortgage interest rates will likely continue to boost home sales for the remainder of 2021.
The good news came at the recent meeting of the Club at the Pinehurst Resort in North Carolina. Mark Haddix of Farm Credit of the Virginias gave an upbeat presentation on how stable mortgage interest rates have kept home building and sales high, which have boosted markets for Hardwoods.
The current rates for 30-year fixed mortgages are 3.0 percent and 15-year rates are 2.7 percent, with some slightly lower depending on the lender, he said. The 90-day forecast is for rates to remain stable.
Haddix, who is a Wood Industry Relationship manager in the Elkins, WV office, said the news is great for softwood manufacturers who produce building materials and good for the Hardwood industry who make the products for the interior of the home. The domestic sales of Hardwoods for flooring, cabinets, millwork and furniture are all rising if raw materials and lumber are available.
Haddix said those two things are preventing the Hardwood industry from meeting the demand for lumber. Log inventories are increasing and sawmills are operating longer hours because of it.
The financing veteran said many forecasters predict a good year for manufacturing in 2021 as the U.S. recovers from the COVID-19 shutdowns of 2020. He cited one economist who said the Federal Reserve has reported it plans to keep interest rates low to help both consumers and employers.
There was a golf event before the meeting and the winner was Mark Williams of Jerry G. Williams Lumber. Longest drive was Peter McCarty of TS Manufacturing and Closest to the Pin was Jay Reese of Penn-Sylvan International.
More information about upcoming meetings is available at www.lumberclub.org.
