Falling lumber prices suggest there is trouble ahead for the struggling U.S. housing market , as builders scale back new construction because of a recent inventory glut and growing economic uncertainty.

Lumber futures—contracts to buy and sell a specific quantity of lumber cut into beams and planks at a predetermined price on a future date—fell below $530 per thousand board feet this month, according to Trading Economics, after reaching a three-year high in August. On Monday, it ended at $526.50—the lowest level in almost a year.

A decline in lumber prices has previously served as a warning sign that the U.S. housing market was heading toward a slowdown in construction. For homebuyers finally seeing the market shifting in their favor in many parts of the country, this could mean losi

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