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The main reason for this increase has been steady interest rates (Haughey, 2005). Looking forward, a number of challenges face the housing construction market including commercial space, potential rising interest rates, and reduced tax revenues eventually impacting public works and institutional buildings. Adversely, the Mortgage Banker's Association has forecasted existing home sales decreasing to 3.5% in 2005 and no change through 2006. New home predictions are the same, with a decrease in 2005 and stagnant growth through 2006. Price increases for the new homes will average 4%. Economists from the Anderson Forecast also predict a decrease in the percentage of housing construction through the next 3 years and go as far as to say a possible recession of the economy in 2006 or 2007 (Calbreath, 2005)...
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