Macroeconomics Paper

With the decline on the spendable income of every household in the economy, domestic consumption started to deterio station creating a negative impact on versatile industries including the lodgment industry. It was identified based puddle the data collected by the self-assurance of Labor and Statistics that the compound annual consider of the hold industrys consumer price index for February 2008 was get even to 2.8 percent, with November 2007 exhibited the steepest changes from its preceding month equal to 0.4 percent, as comp bed to the 4.2 percent of February 2007.This only kernel that the pace of increase in the prices of accommodate units starts to slow overmatch but put away remains high considering the disposable income every household currently have. Furthermore, employment rate plunges down along side with the house grocery as August 2007 enter the highest lay-off on the history of lodgment merchandise equivalent to 21,000 as compared to only 1,000 lay-of fs happened survive August 2006. With this large number of workers quit from their jobs, plus the increasing number of go housing companies, employment rate started to decline.though the GDP of United States remains high despite of the turmoil in the housing commercialise, but its GDP product rate significantly decline from 2006 to 2007 from 2.6 percent to 1.5 percent respectively. This only means that housing commercialise still imposes barrier towards the economic growth of United States. Housing starts was down by 28.4 percent from 2006 to 2007 as consumers courses their demand on housing units repayable to limited reckon and high cost. In order to stay the said depression of the housing market, national official government continued slashing down their interest rate to hightail it housing companies to recover financially since housing gross revenue has been declining since 2006.Last January 2008, the Federal Reserve cut the interest rate to 3.5 percent in order to s tabilize the economy and preclude the impeding economic recession (Presse, 2008). Furthermore, it was in addition identified that new home gross revenue declined by around 46 and 30 percent on 2006 and 2007 respectively. The said unload was the lowest annual home sales since 1995. The above identified economic factors alleviate intimately of the economists and market analysts in ascertain the proximo performance of the housing market as well as of new(prenominal) industries in the economy.In this regard, the aim of this penning is to identify various macroeconomic factors that require the performance of the housing market and how it affects the port of the entire housing market. Furthermore, discussions on the future condition of housing market allow for be presented in order to tardily understand how economists and market analysts projects the performance of housing market. Expect also at the dying of this paper alternatives that would address macroeconomic factors t hat negatively affects the stability of the housing market and its military rating that will serve as the guide in choosing the appropriate solution for the mental unsoundness of the housing market.ConclusionBased from the granted data, arguments and examples above, it is therefore clear that housing market is indeed performing inefficiently due to various macroeconomic factors. Depletion of consumers disposable income made significant negative effectuate to various macroeconomic factors that later on serves as the source of instability of many industries in the economy including the housing market.Furthermore, the projections of most economists and market analysts regarding the future condition of the housing market greatly affects how financial institutions establishes their change transactions with the housing companies which adds up to the financial problems of the latter. With the aid of fiscal and monetary policies of the federal government, the issues concerning the insta bility of the housing market are solved.ReferencesPresse, A. F. (2008). Fed Slashes US Interest pass judgment to 3.5%. Retrieved April 3, 2008