U.S. Existing Home Sales Rise for Second Month

The video discusses the current state of the housing market, focusing on mortgage applications, housing starts, and building permits. It highlights the disparity between supply and demand, particularly in single-family housing, and the impact of interest rates and Federal Reserve policies on the market. The discussion also covers the broader economic factors affecting housing affordability and the challenges faced by first-time buyers.

What is the primary focus when discussing the housing industry's impact on the economy?

• Luxury apartments

• Multifamily housing

• Single-family housing

• Commercial real estate

Which factor is considered a major influence on the weakening of the mortgage market?

• Federal Reserve's interest rate hikes

• Decrease in housing demand

• Increase in housing supply

• Reduction in construction costs

How does the Federal Reserve's lack of purchasing mortgage-backed securities affect the market?

• It increases housing demand

• It decreases construction costs

• It provides a floor under the market

• It contributes to higher mortgage rates

Why is the housing market considered sensitive to interest rates?

• Because it alters the supply of building materials

• Because it impacts affordability and borrowing costs

• Because it influences housing demand

• Because it directly affects construction costs

What is the Federal Reserve's strategy regarding its balance sheet that affects mortgage rates?

• Reducing interest rates

• Allowing a maximum of $20 billion to roll off monthly

• Increasing the purchase of mortgage-backed securities

• Increasing housing supply