One way interest rate cuts affect economic activity is by boosting demand for housing. The most desirable outcome in the housing market is to have the building of new houses follow the fundamental needs of the economy, which are driven in large part by demographics. However, this is not always the case.
4  For the Metropolitan Statistical Area, the poverty rate increased from 12.5 percent to 15.6 percent between 2007 and 2009 (for one-year estimates, see U.S. Census Bureau (2007), American Community Survey (Washington: Census Bureau); and U.S. Census Bureau (2009), American Community Survey (Washington: Census Bureau)) The unemployment rate in the area rose from roughly 4.5 percent to about 11 percent between December 2007 and June 2009 (Bureau of Labor Statistics and Haver Analytics).