US New Home Sales Slip in September by 10.9%

The video discusses the recent trends in new home sales, highlighting a 10.9% decrease in September. It explores the implications for the Federal Reserve, considering the variability in data and the potential stabilization of the housing market. The discussion also covers the impact of high interest rates on the economy and the Fed's focus on slowing demand. The complexities of real estate data, including contract signings and price changes, are examined, emphasizing the Fed's influence on the market and the long-term effects on CPI.

What was the percentage decline in new home sales for September?

• 30%

• 15%

• 28%

• 10.9%

What was unusual about the housing data in August?

• It was unexpectedly positive with a 28% increase

• It showed a decline of 30%

• It showed no change

• It was consistent with previous months

How does a 7% thirty-year fixed rate impact the housing market?

• It makes housing more affordable

• It has no impact

• It decreases the cost of borrowing

• It increases the cost of borrowing

Why are new home sales data tricky for the Fed to interpret?

• They are not influenced by interest rates

• They reflect contract signings from months ago

• They are always accurate

• They are based on current market conditions

What is the concern with rising median home prices?

• They decrease the CPI

• They have no effect on the economy

• They contribute to inflation pressures

• They make homes more affordable