The housing industry has a significant effect on the economy and affects every person's life who is a homeowner or renter. The housing industry plays an important role on economic relations, individually, across the United States, the international market and economic globalization in terms of trade in building materials, like lumber, cement, and steel. Historically the government has tried assisting people with homeowners by supporting community development and increasing access to affordable housing.
The Federal Housing Administration (FDA) has a significant impact on the economic growth as the United States Department and urban development ensuring homeowners will have access to affordable loans. The Federal Reserve decides the interest rate for loans after discussion of the economy, the supply of money and speculating what direction the economy will take. This pace will be generated by the economy and the growth rate .Interest rates play an important role because interest rates can make mortgages less affordable and will have a negative impact on the housing industry.
History and an Overview of the Industry
The housing industry is one of the most important sectors within the US economy. This is because housing is an essential need for everyone therefore, making it one of the leading spending of commodities in the country. Building new homes has being going on for centuries, during the great depression, the Federal Housing Administration (FHA) stimulated the housing industry helping with economic growth. In the fifties and early sixties, the housing industry was only affordable to the upper and middle class Americans, consequently, the United States Department of Housing and Urban Development (HUD), was founded in 1965 and their "mission is to increase homeownership, support community development and increase access to affordable housing free from discrimination." The FHA was then incorporated into the HUD helping to cover long-term mortgages...