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 remained roughly at the same level from August through October even as mortgage rates dropped. Between the beginning and end of November, mortgage rates jumped, although the monthly average shows only a minor uptick from October.
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
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