Single family housing starts were up 4.9 percent for 2000. The homebuilding sector will continue to surge because of low inflation and relatively low unemployment levels. Furthermore , interest rates have recently been on a downward spiral. In the international construction and engineering arena, near-term opportunities for U.S. companies could be limited in the industrial economies due to slow growth there, but virtually unlimited infrastructure needs exist in developing countries. Home sales and housing starts have been extremely robust since 1996.
Interest rates have a substantial impact on housing sale on home buying.
When the Federal Reserve Bank cuts interest rates, it usually takes a while for the banking system to respond with lower rates on consumer loans. Privately owned housing starts in January 1998 were at a seasonally adjusted annual rate of 1,534,000, according to estimates reported today by the U.S. Commerce Department's Bureau of the Census. The seasonally adjusted housing rates for October 1998 is 1,695,000. This is approximately 9 percent above the revised January 1998. These housing starts are clearly influenced by low interest rates and a robust economy.