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New Home Starts and Construction Permits

{}Posted in2023/2/25 19:54:31 | 8Browse

Market Sensitivity: Medium Mean forexrebatesg: Records the number of new home starts Forex rebate for Exness future forexcashrebate permits Issued News Release URL: Issued at 8:30 a.m. EDT. Usually released 2-3 weeks after the end of the covered month Frequency: Monthly Source: Bureau of Commerce Statistics Revisions: Appropriate revisions occur in the first two months of new housing starts and the month before construction permits ForexrebateforExness issued Seasonal adjustments are made in April each year, covering two years of data Why it matters When real cashback forex booms, the economy usually booms It is this phenomenon that has led many experts to view the residential construction industry as one of the most reliable indicators of economic activity The housing sector is one of the first to respond to a downturn when the economy is headed for a recession and one of the first to show signs of recovery when the economy rebounds Why does the housing sector outpace other industries in its response to economic change? Primarily its sensitivity to interest cashbackforexexness An overheated economy raises interest rates, and climbing mortgage rates dampen demand for housing and discourage future construction confidence When interest rates are high, builders are also unlikely to seek construction loans Conversely, when mortgage rates fall and home prices fall -- typical in times of economic weakness -- interest in buying homes is ignited, leading to increased residential purchasing power Next, builders will rush to banks to seek loans before loan costs rise again Another important feature of the real estate industry is its powerful impact on other economic industries through the multiplier effect Multiplier effect means that changes in the progress of real estate construction can have a What industries benefit from a real estate boom? Steel, lumber, electricity, glass, plastics, wiring, plumbing, concrete ...... and the demand for skilled workers also rises. The real estate industry affects so many industries that it is a major driver of the economy. Therefore, two core indicators of real estate builders are important: new home starts and building permits. By looking at the issuance of building permits, we know how much of the planned construction work will begin and where. Investors are attracted to this country if they can get better returns than other countries So, a strong residential construction report is good news for this countrys currency, it often means higher corporate profits and stable interest rates while poor residential construction data can cause the countrys currency to depreciate because it corresponds to lower interest rates and slower economic growth in the future In this case Foreign investors will look for more profitable investment opportunities in other countries and regions
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