http://money.cnn.com/2013/01/27/news/economy/housing-economic-growth/index.html?iid=SF_E_Highlight
This article discusses some details about how the housing market will most likely be the biggest driving force behind economic growth for this year. They said that the market will be at its strongest since before the recession. A particularly interesting concept that was also mentioned was the trickle down effect that will improve the overall economy because of this strong housing market. There will be a vast number of new homes being built and that will create new construction jobs and it will also increase jobs in the housing appliance industry. These new jobs will create a larger number of people with disposable income that will then spend it in the economy and stimulate economic growth.
This rise in housing demand will also be good for banks, as they will eventually have a large demand for mortgages which will allow the banks to raise interests rates. This boom in the housing market seems like just what our economy needs right now.
ReplyDeleteThis rise in housing demand will also be good for banks, as they will eventually have a large demand for mortgages which will allow the banks to raise interests rates. This boom in the housing market seems like just what our economy needs right now.
ReplyDeleteMy article talks a little about the housing market increasing as well. There was also an indication that this is supported by the lower mortgage rates. I thought it was very interesting how the article looked at the main reason being new home building, and then analyzed it all the way to down to how it could overall touch areas within the economy.
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