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The measuring stick of the economy has long been how the housing market if performing. When times are good houses are getting built, banks are loaning money, and families are buying homes. The economy is bad with homes are not being constructed, banks are not loaning out money, and families are not buying homes.

When houses are not being built there are a lot of people affected. People in construction are not hired and therefore they do not make money to support themselves or their families. Companies that sell material to build houses do not make money so they cannot hire more people.

The house material manufacturing companies do not receive material orders thus they need to lay people off in their plants. Banks are not lending money so they raise their interest rates. This makes borrowing money harder and people cannot get the loans they need to buy homes.

So it becomes a self defeating cycle. So much of our economy is based on the house market. But as it is said in the real estate field, the housing market goes up and it goes down. The government is so involved in the housing market that it has many regulations in place to try to control the market. They control everything from the construction of houses to the lending of the money to buy the houses.

The government controls the mortgage broker and puts in place the rules banks must follow in order to lend money. The government dictates the rules real estate agents must follow. Our government can build up house sales by offering incentives to buy like the first time home buyer tax credit. The government also provides income tax savings for all home owners. If you own a home and are making loan payments you can write off the interest you pay on the loan off your income tax bill.

This is an age old reason why people want to own a home, so they can pay less tax. We simply take for granted this benefit when in reality it is a major way government controls the home market. There are many factors involved in our economy but no other area is controlled or determined by the government than the housing market.

Perhaps because the government knows that there is stability in home ownership. Or perhaps they know that if people own homes they have to keep busy trying to keep their homes so they have no time to worry about what the government is doing. Or maybe the government believes so much that home ownership is part of the pursuit of happiness and all that.

Whatever is the reason the bottom line it the government is the housing market. How you feel about that is all the way you look at ti. He housing market also will either be up or down. And our economy will always be up or down. There will always be those who want to make a lot of money in the house market. And there will always be those who simply want to buy a house and make it a home. And there will always be the government there to control it all.

When you’re deciding to buy a house, some of the factors that you have to take into account are mortgage rates. As mortgage rates are important for home-buyers, rates GIC are important for investors. If you’re interested in a customized financial plan, remember to visit us.

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