Lumber futures fell below $550 per thousand board feet to their lowest level in nine months as elevated borrowing costs continued to weaken demand. Mortgage rates remain near their highest level in more than a year after the Federal Reserve hiked its key policy rate, limiting demand from prospective homebuyers in a tight US housing market. Building permits declined 2.7% over the month, although single-family housing starts, which use more lumber, rose 7.6% in August. Supply concerns provided some offset after US-Canada trade talks fell through. Ottawa had announced counter-tariffs of 25% on US lumber and 50% on plywood following US tariffs on several lumber-related goods. US forestry groups have long accused Canada of distorting the market, citing public ownership of 94% of Canadian forestland versus private ownership of 58% in the US.