U.S. Housing Starts Slip to Two-Year Low in December

The video discusses the housing market's weak performance around the year's end and hints at a potential recovery in spring, as indicated by the home builders' sentiment index. It highlights concerns about quirky and delayed data affecting retail sales and the need to interpret such data cautiously. The discussion also covers the impact of the tightening labor market on consumer behavior and housing, noting that while wages are rising, disposable income isn't necessarily boosting housing investments. Finally, it addresses the volatility in housing starts and the potential positive effects of the Federal Reserve's dovish policy shift on mortgage rates and the housing market.

What was the trend in the Home Builders Sentiment index over the last two months?

• It declined significantly.

• It was not reported.

• It remained unchanged.

• It rebounded.

Why should the data released on a delayed basis be taken with caution?

• It is only applicable to retail sales.

• It is always accurate.

• It is often quirky and unreliable.

• It is too recent to be relevant.

What is the relationship between consumer behavior and the housing market?

• Consumers are spending more on housing due to increased wages.

• Increased disposable income is not being spent on housing.

• There is no relationship between consumer behavior and the housing market.

• Consumers are saving more and not spending at all.

How has the Fed's recent policy shift affected mortgage rates?

• Mortgage rates have increased.

• Mortgage rates are no longer relevant.

• Mortgage rates have decreased.

• Mortgage rates have remained the same.

What is the expected growth in home prices according to the final section?

• Double-digit growth

• No growth

• Negative growth

• Single-digit growth