What Effects Do Housing Reports Have on the Financial Markets and forex trading ?

In this article, I am going to highlight all the impacts of housing reports on the financial markets.
U.S. department of housing development releases a monthly economic data related to the housing reports. In the U.K, the local government also publishes such a data. This data becomes an important part for the forex market related to the economic news calendar.
The main focus of this report is on bringing data about the total number of houses being purchased by the customers. It also includes the detail of old houses being sold, pending orders of the houses. Permits related to buildings, and price of houses. This data gives an in depth indication of the economic activity in the housing and mortgage sector.
In 2006, the housing data started to rise, which led to the financial crises of 2008, which then further led to the collapse of mortgage market in the UK, US, Europe, and even Asia. Until then, the data from housing sector is acting like a benchmark that is used to measure the total economic performance of a country. Now this data is also causing a major change in the value of a currency.
How financial markets are being impacted by the housing data.
In the US, the home ownership was about 64% until the 1980s. In 2004, this percentage jumped to an all-time high value of 69%. This increased was supported by the massive lending mortgage. As a result of mortgage, the price of houses saw a new height which led to the creation of poorly synchronized financial markets. The situation got worse as many people started getting loan regardless of their credit ratings.
First, there was a boom in the market which suddenly turned the other way around as there was a surplus of houses that were left unsold. As a result, the price of houses eventually started to fall. The immediate effect of this situation was on the investors as they started losing their money. The pressure was then shifted to the mortgage institutions as they started to feel the immense problem in recovering the loan amount from the investors.
Ways of utilizing housing data in the forex world
Earlier, in this article, we have observed the problems caused by the housing sector. Now it is quite obvious to look why this data is being heavily used to measure economic performance. One can use this data in the forex market as follows:
• For selling new homes(US)
• For selling existing homes(US)
• For selling pending homes(US)
• For getting building permits(US and Canada)
The first three items that are mentioned above are highly significant. Since the US dollar is the major currency, it can be counter traded with other currencies like AUD, EUR, CAD, GBP, and CHF.