Housing Market Not as Bad as It Seems: Hepp

The video discusses the housing market trends, highlighting the normalization after a period of high competition and price growth. It explains the momentum in home prices and the impact of luxury home sales on median prices. The relationship between home ownership and rental markets is explored, noting the significant rise in rents contributing to inflation. Finally, the video examines the connection between the federal funds rate and mortgage rates, emphasizing the spread increase due to investor concerns.

What was the impact of rising mortgage rates in early 2022 on the housing market?

• Increased home sales

• Decreased home sales

• Stable home prices

• Increased housing competition

How does the CoreLogic HPI differ from the median sales index?

• It tracks luxury home sales

• It is a repeat price index

• It includes rental prices

• It measures only new home sales

What was the percentage increase in home prices from the beginning of the pandemic until now?

• 20%

• 60%

• 43%

• 10%

What has been the trend in luxury home sales activity?

• Pullback in sales

• No change in sales

• Sales only in coastal areas

• Increase in sales

What has been a significant contributor to inflation in the rental market?

• Stable rental prices

• Decreased migration from coastal areas

• Decreased demand for rentals

• Increased migration to affordable areas

What is the relationship between federal funds rates and mortgage rates?

• They move in opposite directions

• They are unrelated

• They move in tandem

• Mortgage rates are always lower

What factor has caused mortgage rates to rise faster than the federal funds rate?

• Stable housing market

• Decreased rental prices

• Investor fears of prepayment risk

• Increased home sales