The big ''ll,l" is interest rates

By Gerald R. Cannon President/general mgr. Dexter Lock

IFHE year r 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 someday be known as "boom years."

The population grofih 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 financing 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 optimism. Channels of distribution will continue tight controls of inventory while expecting the manu- facturer to respond with quick delivery and high service levels. Builders are starting to recognize that they must be better marketers of their product; for example, realizing that quality locks can increase the sales oftheir product

Story at a Glance

Gain in economic recovery due. .lower interest rates could create housing boom .distributors' inventory control builders need to market product. .consumer spend. ing key to remodeling & reno. vation.

by appealing to the security interest of their potential customer.

As we approach the end of 1983, we are witnessing an increase in the consumer spending which is another indication of the nation's economic recovery. This positive attitude in consumer spending could lead to an increase in homeremodeling and renovation, which would also place higher demands on residential hardware during 1984.