Housing Starts Economic Forecast Housing starts are new home sales combined with existing home sales. Sales of homes fluctuate with the economy and the factors that affect the economy. These factors include the Real Gross Domestic Product (or GDP), the interest rate, individuals personal income, housing starts and mortgage rates. In this paper we will compare and contrast these indicators as they are gauged in two different 18 month forecasts. Additionally, a reconciliation between the differences these 18 month forecasts project is provided. Real GDP: In spite of projected growth in GDP of 3.5 percent or more, housing starts are considered to remain modest at best over the coming year and a half. The primary reason is that housing starts generally lag in economic growth. Therefore, even projections of robust GDP growth are not expected to result in considerable housing start improvements. The Federal Reserve projects GDP growth to remain at 3.5% over the coming 18 months and is likely to take monetary action to ensure that level of growth. This level of growth reflect......

Word Count: 988
Page Count: 3.9 (250 words a page / double spaced)

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