Housing Starts to Fall Another 9%: MBA Chief Economist

The video discusses the current state of the housing market, highlighting a decrease in housing starts and permits due to high mortgage rates and home prices. Builders are responding to reduced demand by slowing construction. Mortgage rates have recently decreased, which could impact the market positively, especially for first-time buyers. Predictions suggest a slight decline in home prices by the end of 2023, with existing homeowners less likely to sell due to low distress levels and high equity.

What is one of the main reasons for the decline in housing starts?

• Increased demand for multifamily homes

• High mortgage rates and home prices

• Government restrictions on construction

• Improved public transportation options

How might the housing market change if mortgage rates decrease?

• More first-time home buyers may enter the market

• Home prices will increase significantly

• The market will remain unchanged

• There will be a decrease in first-time home buyers

What is Tom Lawler's prediction for housing prices over the next two years?

• Prices will fall by more than 20%

• Prices will remain stable

• Prices will fall by up to 12%

• Prices will increase by 12%

Why might existing homeowners be less willing to sell their properties?

• They are looking to buy more properties

• They are planning to rent out their homes

• They do not want to take a loss on their property

• They are waiting for prices to increase further

What is a stabilizing factor in the current housing market?

• Increasing construction costs

• Low mortgage delinquency rates

• High unemployment rates

• Decreasing homeowner equity