Long Term Perspective

Income and interest rates are the two key factors that affect housing activity. More housing construction translates into increased demand for furniture and appliances as consumers refurnish their new homes. The rate of housing construction peaked in the first quarter of 1999.

Short Term Perspective

Housing starts decreased steadily since April. Interestingly enough, mortgage rates peaked at nearly the same time as housing starts, and have since come down about 70 basis points.

Real GDP vs. Final Sales   •   Real Consumer Spending vs. Real Income   •   Debt Burden vs. Savings Rate

Business Fixed Investment vs. Net Cash Flow   •   New Orders   •   Housing Starts vs. Mortgage Rates

Merchandise Exports vs. Trade Weighted Dollar   •   Merchandise Imports vs. Trade Weighted Dollar