The National Association of Realtors said it expects the median home price to increase 0.3% this year, compared to a near-10% gain in 2022.

A further rise in lumber prices would be a positive for producers, but not so much for consumers who are still reeling from high levels of inflation.

"NAHB is expecting weaker housing conditions to persist in 2023 and we forecast a recovery coming in 2024," economist Robert Dietz said.

Yahoo Finance Live's Brian Sozzi breaks down the chart of the day which looks at lumber prices.

Lumber prices, a vital barometer of the state of the US economy, are down 60% on the year. What's the source of the pressure on lumber prices, and what can that tell investors about the outlook for th...

Lumber futures are sleeping but holding the $400 per 1,000 board feet level. The new physical contract is trading at a premium to the old random-length contract.

"At 7% interest rates I wouldn't expect lumber to do much for a while," Ashley Boeckholt of MaterialsXchange told Insider.

We called it again with the Russia risk in timber markets back in February. Russia is retaliating against sanctions by stopping the export of Russian birch.

Yahoo Finance reporter Ines Ferre looks at the price action for lumber, which is down 64% year to date.

Lumber prices have dropped by more than 60% so far this year, but don't count on a recovery soon. Higher interest rates and inflation will continue to slow demand for single-family homes.