The big 33a1" is interest rates

By Genld R. Cennon Prcident/genaal mgr. Dexter Lock

THE year f 1984 should see a steady gain in the economic recovery. Theone big "if" in the housing industry is interest rates. If mortgage interest rates remain below the l39o or lower range, then the mid'80scould as "boom years."

Someday Be Known

The population growth of married couples crossing the age 30 milestone during the decade of the'80sis about 40,000,000. This is the generation that will be looking and buying new homes providing there is frnancing available at realistic interest rates. Even if much of this demand is marginal, that is made up of households who can not afford new or used housing, this still amounts to a large potential market with substantial growth through the '80s.

Although we will see a gain in housing starts, the housing products produced will not be the same and all areas of the country will not share equally.

1984 will continue to be a year of cautious optimisrn. Channels of distribution will continue tight controls of inventory while expecting the manu- facturer to respond with quick ddivery and high service levels. Builders arc starting to recognize that they must be bener marketers of their product; for example, realizing that quality locks can increase the sales of their product

Sfory at a Glance

Gain in economic lecovely due. .lower interest mtes could create housing boom .distributots' invenlotY con. trol. .builders need to martet prcduct. .consumer spending key to omodeling & reno Yation.

by appealing to the security interest of their potential custom€r.

As we approach the end of 1983, we are witnessing an increase in the onzumer spending which is another indication of the nation's economic recovery. This positive attitude in conzumer spending could lead to an increase in home rernodeling and renorration, which would also place high€r demands on residential hardware during 1984.