Fannie Mae Economist Sees Homebuilding Supply Demand Rising

The video discusses the impact of infrastructure spending on economic growth, highlighting its long-term benefits in improving economic efficiency, similar to the historical impact of the Interstate Highway System. It also addresses current inflationary pressures and supply chain frictions, noting that some are transitory, such as those in the airline and auto industries. The video further examines the housing market, focusing on the significant rise and recent decline in lumber prices, and how these affect construction costs and demand.

What is one of the long-term benefits of infrastructure spending mentioned in the video?

• Short-term economic boost

• Immediate job creation

• Reduction in taxes

• Improvement in economic efficiency

How is the development of broadband compared in the video?

• As a new form of entertainment

• As a modern Interstate Highway System for electronic communication

• As a temporary solution for remote work

• As a replacement for traditional roads

What is the expected trend for inflationary pressures in the housing sector?

• They will disappear completely

• They will increase into next year

• They will remain stable

• They will decrease significantly

What factor is contributing to the rise in used car prices?

• Increased demand for new cars

• Chip shortages in the auto industry

• Higher fuel prices

• Government subsidies

How did the cost of lumber for a 2,000 square foot house change from January to March 2021?

• It decreased by $5,000

• It remained the same

• It increased from $5,000 to $17,000

• It increased to $10,000