Real estate development depends heavily on lending liquidity, which spurs new construction projects and thereby creates demand for new materials and subcontractor capacity.

This means that when conditions are favorable for borrowers, construction volume increases.

Forecasters currently believe that the US housing market will end the year in a downturn. This is partly due to the rapid and unsustainable growth it saw since the pandemic, and partly by design: The Federal Reserve hopes that cooling off the housing market will slow down the rest of the market and thereby rein in inflation. 30-year mortgages have steadily increased for this reason. The Fed is expected to continue to raise interest rates for as long as it takes to bring spending under control.