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Gen 300

Essay by   •  April 19, 2011  •  408 Words (2 Pages)  •  964 Views

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For the next 18 months the housing starts within the US looks like it will be another rollercoaster ride for builders and realtors. It looks as though 2006 will start off strong with around 2000 units per month for January Ð'- June 2006 then go down slightly to 1900 units per month for June- December 2006 and take a gradual decrease until around May then it will start picking back up again. (Bloomberg.com) the National Association of Realtors said last week. Rising mortgage rates may reduce housing starts in 2006. Housing starts will grow 5.8 percent this year to 2.06 million homes, the most since 1972, before falling to 4.8 percent by the end of 2006. According to another web site (steeleanalytics.com) they are predicting housing starts for 2006 to be somewhere around 1.825 million new homes started for the year which is down from their prediction in 2005 of 1.883 million new home starts. The total number of housing starts all comes down to what the mortgage rates and appreciation rates of homes do over the next 12-18 months. At this time it looks like it will still remain a strong year but only time will tell what will actually happen.

The 18 month forecast on money supply or The total supply of money in circulation in a given country's economy at a given time, according to (austincoins.com) is with a new chief at the Federal Reserve, no one is quite sure what to expect next. According to (safehaven.com) this year the restrict growth in M2, the broadest measure of money supply was predicted to be at around 16 percent this year. The 2005 target was 15 percent. The M1 money supply is looking like it will take a strong dive from a peak in December 2005 around 1.39 billion. It will level off around mid 2006 at 1.35 billion where is will stay steady for a few months at that level. Another interesting fact for the money supply indicator is that it seems the Federal Reserve will print so many U.S. Dollars that the Federal Reserve will discontinue

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