Interesting Impact
01/09/2014 | | Business Cycle, econ70, Economic forecasting, economist on radio, economist on TV, eisenberg and economics, Eisenberg and housing economics, Eisenberg and public speaking, Elliot eisenberg, funniest economist, funny housing economist, Graphsandlaughs, graphsandlaughs and eisenberg, housing sales, Housing Starts, MLS, mortgage banking, Multiple listing service, politics and economics, Public speaking economist
While interest rates are on the rise, so is economic growth. At this stage in the business cycle, growth has the upper hand. While rising interest rates dampen home buying activity, better growth and the concomitant increase in employment more than make up for it. That is why I expect new single-family construction activity to rise by 25% to 775,000 and multifamily activity to rise by 11% to 382,000.