why? becase It effects people who spend money on retail, this buying creates jobs from the salers person or the waiter at your table, all the way back to the factory floor including mines and transport companys as well as all the companies that support them like machanics for the trucks to move the goods, more machanics for servicing the cars of a low unemployment society driving lots, ever angle you can think of jobs are created..
when the boom started, everyone started buying, housing, and goods on their credit card to fill the houses.. this creates a massive demand for more staff to supply the demand at all these levels which needs more staff and workers to keep up.
when interest rates went up a little, on what people had over spent there was no money left ver oto spend. and all the jobs that were created, as well as small busines's are now being snuffed out as a result of all their sales dropping away.
that is why house prices need to come down, and why keen focus's on housing
