No dooln-&-gloom

By Robert C. Doran Director, Marketing Research & Planning Gold Bond Building Products

T ue HOUSING market is not a doom-and-gloom r forecast for 1989, but overall production will be less than expected.

Housing starts that reached 1.8 million in 1986 and 1.6 million in 1987 are now in the 1.4 to 1.5 million range in 1988. Several factors are contributors:

(l) Higher fixed and variable mortgage rates. Fixed rates were at 10.5% at mid-year, and by comparing the l2-month averages, fixed rate mortgages were 34 basis points higher in 1988 than in 1987.

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sales have fallen 6.90/o and new home sales have declined

6.40/0. lt is very likely the downturn in sales has negatively affected housing starts.