Housing

The housing market is both a major economic sector and a key indicator of broader economic health. Housing represents the largest asset for most American families, and construction activity generates jobs and demand across multiple industries. Housing is particularly sensitive to interest rate changes. Currently, key indicators in this category include Building Permits at 1,386K, Case-Shiller Home Price Index at 332.2, Existing Home Sales at $4,090,000M. (Source: FRED)

Key Relationships

Housing starts and building permits are leading indicators for future supply. Existing home sales measure current demand. The Case-Shiller index tracks price changes across major metros. Permits typically lead starts by 1-2 months, making them a useful forward-looking signal. (Source: Census Bureau, S&P via FRED)

How This Category Connects to Others

Housing is heavily influenced by the Rates category, as mortgage rates determine affordability for buyers. A 1-percentage-point rise in mortgage rates can reduce buying power by roughly 10%. Housing activity contributes to the Employment category through construction jobs and related services (real estate, lending, home improvement). Housing wealth affects Consumer confidence and spending through the wealth effect. (Source: FRED)