Housing Starts Drop, Mortgage Rates Climb

The video discusses the current state of the U.S. housing market, highlighting a slowdown in home construction and building permits due to elevated mortgage rates. Despite this, there is optimism as consumers re-engage in the market, especially with the upcoming spring selling season. Interest rates have risen, prompting builders to offer incentives to buyers. Home builder confidence has seen an uptick, and the stock market performance of home builder stocks has been strong, suggesting potential for growth. The video explores these dynamics and their implications for the housing market and stock performance.

What has been the trend in home construction and building permits since 2020?

• They have fluctuated unpredictably.

• They have decreased.

• They have remained stable.

• They have increased significantly.

What is one of the main challenges faced by builders in the current market?

• Decreasing land availability.

• High levels of unsold inventory.

• Working through backlogs.

• Lack of consumer interest.

How are builders trying to attract buyers despite high mortgage rates?

• By limiting the number of homes available.

• By offering concessions and price cuts.

• By increasing home prices.

• By reducing the quality of homes.

What indicates an increase in home builder confidence?

• A decrease in home sales.

• A reduction in building permits.

• A decline in mortgage rates.

• A rise in Google searches for homes.

What has been the performance of home builder stocks compared to the S&P 500 since June?

• They have shown no significant change.

• They have outperformed.

• They have performed similarly.

• They have underperformed.

What is the expected trend for the spring selling season?

• It will be less active than usual.

• It will be more active than usual.

• It will be similar to previous years.

• It will be unpredictable.

What is the potential for home builder stocks in terms of multiple expansion?

• The potential is already realized.

• There is little to no potential.

• There is significant potential.

• The potential is declining.