New US Home Construction Retreated in June

The video discusses recent trends in the housing market, highlighting an 8% drop in housing starts following a 22% rise in May. Building permits also saw a decline. Despite these fluctuations, the home building market remains healthy. Mortgage rates are a significant factor, with most Americans holding mortgages under 6%, limiting existing home sales and pushing demand for new homes. The construction sector struggles to keep pace with demand. The video also touches on the impact of disinflation on construction materials and the broader economy, including retail sales gains.

What was the percentage drop in housing starts in June?

• 8%

• 22%

• 9.3%

• 3.7%

Why are fewer existing homes being sold according to the transcript?

• High mortgage rates

• Lack of demand

• Increased construction costs

• Low mortgage rates

What is a limiting factor for the construction industry as mentioned in the transcript?

• Number of construction workers

• Low mortgage rates

• High demand for new homes

• Availability of land

How are home builders trying to attract buyers according to the transcript?

• Offering discounts on land

• Reducing mortgage rates

• Lowering construction material costs

• Providing free appliances

What sector saw gains due to the housing market activity?

• Automobile industry

• Retail sales of appliances and furniture

• Agriculture

• Technology sector