Dive Brief:
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A perfect storm of low mortgage interest rates, a strengthening job market, and loans that are easier to qualify for could make 2015 the best year for home building since before the recession, according to an analysis by Bloomberg.
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The article quoted economists who said growth in the housing industry could be "pivotal" to the country’s overall economic growth this year. In turn, that could help the U.S. counter a decline in international demand for its exports and oil field equipment.
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The economists said it’s possible the construction industry, and those related to it—like the sectors that make and sell appliances, furniture, and insurance—could grow by 3% this year, slightly better than the Federal Reserve’s forecast of 2.6%.
Dive Insight:
A stronger-than-expected showing by the housing industry could work in its own favor, convincing regulators to act sparingly when raising interest rates and banks to move forward with plans to lower down payments and loosen credit standards for mortgages. Many economists believe that the lower the cost of a loan and the easier it is to qualify for one, the more first-time buyers—who have shied away from homeownership for several years—will feel confident enough to make the investment.