 Sam
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 Posted: Wed Apr 07, 2004 3:35 am Post subject: Housing Starts |
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Housing Starts refer to the number of privately owned new homes or housing units started during the same period of time. The U.S Census Bureau reports such data which helps to determine whether the public has sufficient amount of money. For instance, a rise in housing starts implies that there is more money in the economy.
The indicator keeps a track of the number of new single-family homes or buildings that are constructed throughout the month. Each house and each single apartment are counted as a single housing start. The properties include private and publicly owned units except the mobile homes.
Housing Starts and Investors
According to the U.S Census, the housing starts represent over 25% of the investment dollars and a 5% of overall economy. The indicator detects trends of brighter prospects in the economy. Declining housing starts imply that there is a slow down in the economy.
Data on housing starts has a strong impact on the bond market and predictions related to movements in the interest rate. A rise in interest rates brings down the housing starts.
Housing starts is a leading indicator which considers data that are collected recently and are adjusted for weather conditions. Thus they present authentic data based on recent facts and figures in order to determine the condition of the housing industry and hence the economy. |
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