US Existing-Home Sales Have Hit Bottom, Says Mark Zandi

The video discusses recent trends in the housing market, focusing on declining home sales and mortgage rates. Mark Zandi from Moody's Analytics provides insights, suggesting that the market is nearing a bottom in sales but still faces affordability challenges. He predicts that mortgage rates will stabilize below 7% due to Federal Reserve policies. The discussion also covers inflation, housing rents, and potential economic risks, emphasizing the need for balanced policy-making to avoid recession.

What is the main reason for the decline in home sales in the U.S.?

• Increase in new home construction

• Low demand for homes

• High mortgage rates

• Government regulations

What combination is needed to restore affordability in the housing market?

• Higher mortgage rates and lower house prices

• Lower mortgage rates, lower house prices, and rising incomes

• Stable mortgage rates and increased government subsidies

• Higher house prices and lower incomes

Why are mortgage rates unlikely to rise above 7% again?

• An increase in treasury yields

• A decrease in housing demand

• The Federal Reserve's target for the federal funds rate

• Government intervention in the housing market

What is one factor contributing to the wide spread between mortgage rates and treasury yields?

• Increased housing supply

• Government subsidies

• Low inflation rates

• High prepayment risk

What is a potential risk that could impact the economic outlook?

• A sudden drop in oil prices

• A spike in oil prices

• Stable interest rates

• Increased consumer spending

What is expected to happen to the cost of housing services over the next year?

• It will decrease slightly

• It will remain stable

• It will increase significantly

• It will moderate significantly

What is necessary for the economic scenario to play out as expected?

• A significant increase in interest rates

• A decrease in consumer confidence

• An increase in housing prices

• A little bit of luck and effective policy-making