Lumber Prices Up 120%: Will Homebuilders Be Hurt?

The National Association of Homebuilders index, or the HMI, has dropped over concerns that homebuilders are struggling with, among other things, construction costs rising faster than appraised values. One major contributing factor to this is the current runaway skyrocketing lumber prices.

In this video, Motley Fool consumer goods analyst Blake Bos tells investors what's behind these sky-high lumber prices and how to play the housing boom as an investor while keeping this risk in mind.

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The article Lumber Prices Up 120%: Will Homebuilders Be Hurt? originally appeared on

Blake Bos has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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