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If the interest rate were to decrease, the demand for home building would increase therefore increasing jobs in the home building market as well as income in the market. If the interest rate were to decrease, however, the demand of home building would, in turn, decrease therefore creating a less lucrative market in home building and therefore a loss of jobs, income etc may occur during this time...
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Another externality for the housing market is the building of the home itself. Basically, according to an interesting article on the direct impact home building makes on the U.S. economy found in the National Association of Home Builders, building one single family house adds approximately three jobs to the market, and increases financial revenue for the federal Government by $80,000 per year...
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