Look, we are going to do everything we can to sustain these margins. Obviously, the inventory profit side of it will roll off. But look, I remain confident that we are delivering exceptional value to the marketplace.
Frank Lonegro: Ryan, depending on the quarter, obviously, there is some seasonality in all the businesses, and then you have got to look at when the various price increases kicked in and when the inventory profits rolled off on a per quarter basis, but you are in the probably 200 or 300 basis points depending on where you are in that cycle.
Ryan Merkel: Perfect. Thank you.
Operator: Thank you. Our next question comes from the line of Kathryn Thompson with Thompson Research Group. Your line is now open.
Kathryn Thompson: Hi, thank you for taking my questions today. Just a follow-on on the margin question and particularly related to the non-res. Of the 100 basis points down on the margin, how much of it was cost rising past the prices versus your mix shift to non-res? Is there any way to separate the two? And then is there anyway that you can €“ a trend that we have seen in certain markets, particularly in the Denver market, even pre-COVID, is you would have a cycle where residential would be €“ now get too pricey, which would drive strength in multifamily and then it would kind of ping-pong back and forth. Are you seeing trends like that in other fast growing markets in the Southeast and the Southwest? Thank you.
Frank Lonegro: Kathryn, hey. let me start and then kick it over to Julian. In terms of the 100 basis points that we mentioned on the year-over-year gross margins, price-cost was about 60 basis points of that and mix was about 40 basis points of that. Obviously, the mix relates to the non-res piece of the equation. By and large, ASP, so average selling price for most, if not all, of our products, lumber, I am going to take to the side. But most, if not all of our products had higher ASP on both a year-over-year and a quarter-over-quarter basis.
Julian Francis: In terms of the trends we are seeing, Kathryn, I think that what we have seen is certainly strength in multifamily. That’s continued. Obviously, the residential single-family market has been impacted by the interest rates and the mortgage rates changing. I think there is some settling out to do in there. I think we all know about the under-building of single-family homes in the country, and I think we will get back to growth in that after a little bit of an air pocket here coming through. But fundamentally, we need it. I don’t think we are seeing anything out of the ordinary on a regional basis sort of bouncing back and forth, as you have articulated. I don’t think we see that. We see strength in multifamily.
That’s continued. We see residential single-families has eased in certain parts of the country where the mortgage rates have increased and had an impact. And then commercial, which typically has lagged the residential construction by about 18 months, we continue to see strength in that market. And particularly as the supply chain has eased, I think the projects that have been delayed in our leasing, we are seeing that in our backlog, and we are seeing that in our volume growth in that sector. We think that’s going to continue. And as we said in our prepared remarks, we believe the underlying fundamentals are strong across the board. I think we are going to see how the economy plays out over the next 6 months, 12 months, but we remain confident that the fundamentals are good, and we are excited about where we are with our strategy and the momentum that we are generating.
But in terms of trends in the Southeast relative to what we have seen in Denver, I don’t see that specifically come out in our numbers.
Kathryn Thompson: Great. Thank you very much.
Operator: Thank you. Our next question comes from the line of Ketan Mamtora with BMO. Your line is now open.
