This economic indicator is based on the total calculation of the amount of permits that were issued for the building of new houses.
Like any other indicator that is based on the assessing of the building pace and the real estate sale rate, this index depends up the interest rate. This is due to a fact that credits for the building are taken in a bank, according to the interest rate that is set in a country. Building permits is the seasonal indicator too. During the winter’s months it starts having the negative dynamics.
Generally, it is necessary to say that in the dynamically developing state amount of the issued building permits has to grow. It is an important indicator that shows investors the appropriate for an investment. The result is that the national currency strengthens in the mid-term.