Foreclosure Lesson #4 - National Factors - Business Cycle

This is installment #4 of our Foreclosure Lessons. This far we have been over interest rates, inflation, and flow of investment funds. Now, we are going to learn about the Business Cycle of Real Estate and how it affects the Real Estate Market and Foreclosures.

The National Economy rises and falls in cycles - so does Real Estate. As our economy goes from recession to prosperity, investments are influenced. So let's define America's economic cycles.

When economy is strong, incomes are high, unemployment is low, and people tend to have more discretionary income to invest in Real Estate.

When economy is weak, incomes are lower, unemployment is higher, resulting in fewer Real Estate purchases, higher foreclosure rates, more renters and lower property values.

Researching the state of the economy is best served by reading things like The Wall Street Journal, Fortune Money, CNNMoney, and USA Today. Of course you can always Google or Digg information on our Economy.