Question

What has been the general direction of the housing market (up or down) and what is the cause of the direction? include chart or graph is possible

Answer 1

Currently In USA Federal reserve is aiming to control inflation by raising interest rates. This will mean as home loans get expensive people will buy less (demand going down). At the same time the protectionist policies followed by Trump govt. has put tariff on steel and other inputs required in house construction has raised cost of production. Hence final product will be more expensive. Already there is less supply of houses in USA. Number of immigrants going down also leads to less demand.

All these factors lead to less sale in housing sector. Hence it is down.

Link for graph: https://money.cnn.com/2018/08/28/news/economy/housing-market/index.html

By Lydia DePillis @CNNMoney August 28, 2018: 2:00 PM ET.