How Will Rising Mortgage Rates Impact Housing?

The video discusses the role of housing in the US economy, highlighting the impact of interest rates on the housing market. It compares the current situation to the 2013 taper tantrum, noting that the increase in mortgage rates is smaller now. The video explores how these changes affect home sales, broker commissions, and GDP. It also examines the dynamics of housing prices and refinancing activity, concluding with an optimistic outlook for housing due to improving economic conditions and increased demand from millennials.

What was the impact of the taper tantrum in 2013 on the housing market?

• Decline in home sales and broker commissions

• Increase in broker commissions

• Increase in home sales

• No change in the housing market

How do higher mortgage rates typically affect housing prices?

• They cause housing prices to fluctuate unpredictably

• They increase housing prices

• They have no effect on housing prices

• They dampen housing prices due to reduced demand

What is the current significance of refinancing activity in consumer spending?

• It has no significance

• It is less significant than it used to be

• It is more significant than before

• It is the most significant factor in consumer spending

What is one of the main arguments for a positive outlook on housing?

• Decrease in millennial demand

• Collapse in housing activity

• Lack of economic growth

• Increased household formation and demand from millennials

What is the expected impact of overall economic growth on the housing market?

• It will negatively impact the housing market

• It will cause a decline in housing prices

• It will support the housing market despite higher mortgage rates

• It will have no impact