U.S. New-Home Sales Plunged During Month of Inclement Weather

The video discusses the current state of the housing market, highlighting the chronic lack of supply and its impact on prices. It examines the mortgage market, noting that many have never experienced high rates, and how affordability pressures are more significant than interest rates. The labor market is analyzed, focusing on the challenges of achieving full employment post-pandemic, with many workers still sidelined. Inflation concerns are addressed, with expectations of temporary increases due to supply shortages and economic recovery, but not hyperinflation.

What is the primary factor driving the housing market according to the discussion?

• Government subsidies

• High demand for luxury homes

• Chronic lack of supply

• Low interest rates

At what mortgage rate do experts start to see a significant impact on the housing market?

• 5%

• 2%

• 3%

• 4%

What is a key difference between full employment and pre-pandemic employment levels?

• Full employment can occur with fewer workers than pre-pandemic levels

• Full employment is a fixed level

• Full employment means everyone has a job

• Full employment requires higher wages

What is a potential reason for workers not returning to their previous jobs post-pandemic?

• Lack of interest in working

• Permanent closure of small firms

• Higher wages elsewhere

• Government restrictions

What percentage of new jobs are driven by small firms?

• 66%

• 50%

• 26%

• 10%

What is the Federal Reserve's expectation regarding the current rise in inflation?

• It will lead to hyperinflation

• It is a permanent change

• It will cause a recession

• It is a temporary increase

What structural shift might affect the labor market according to the discussion?

• Decrease in technology use

• Automation of certain roles

• Increased manual labor

• More part-time jobs