U.S. Pending Home Sales Decline as Prices Restrain Buyers

The video discusses the current state of the housing market, highlighting concerns about its weakness despite consumer confidence and low interest rates. It identifies supply constraints and affordability issues as key challenges, with rising home prices impacting consumer balance sheets. The discussion also covers the impact of rising mortgage rates and the Federal Reserve's approach to managing interest rates, emphasizing a gradual path of rate hikes to support economic recovery.

What is one reason for the disappointment in the housing market despite consumer confidence?

• Increased government spending

• Supply constraints

• Low interest rates

• High demand for housing

What has been a significant factor in the deterioration of housing affordability?

• Increased government regulations

• Lower stock market returns

• Decreased consumer confidence

• Rising home price appreciation

Which two factors have contributed to the improvement of consumer balance sheets?

• Increased wages and employment rates

• Rising home prices and stock market

• Government subsidies and tax cuts

• Decreasing interest rates and inflation

What is the Federal Reserve's current approach to interest rate hikes?

• Immediate rate cuts

• No change in rates

• Gradual rate hikes

• Aggressive rate hikes

How does the Federal Reserve's approach to interest rates affect long-term mortgage rates?

• It results in a significant decrease

• It leads to a rapid increase

• It keeps them anchored at current levels

• It causes them to fluctuate wildly