The national home building market appears to finally be cooling. Building permits across the nation have fallen 15 percent since the beginning of the year. The effects of the interest rate hikes may finally be catching up with the market. While it appears that Humboldt County has begun to experience a slowing of growth in the last few months, some economists warn that the economy as a whole may have only just begun to feel the effect of the Federal Reserve's interest rate hikes. Though the Federal Reserve voted to not raise rates at their August 22 meeting, there are still the previous six rate hikes which must work ther way through the economy.
Economists estimate that it takes between five and eight quarters for a rate hike to be fully felt.
Using that estimation, the economy has probably only felt the effects of the hikes in June and August of 1999.