Breaking Housing’s ’Vicious Cycle’ Key to Recovery

Breaking Housing’s ’Vicious Cycle’ Key to Recovery.

The U.S. economy is searching for the next “virtuous cycle,” a state of self-sustaining growth where one element of the economy — say, jobs — feeds another, such as consumer spending, which prompts businesses to produce more goods and services, which comes back around to spur job growth.The virtuous cycles that brought the U.S. out of previous economic downturns all started with housing. In 1982, 1991 and 2001, lower mortgage rates brought on by recession led to increased housing demand and spurred new home construction and remodeling. 

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