Zillow Economist Says US Home Equity to Be Preserved Amid Sales Slowdown

The video discusses the Federal Reserve's cautious approach to the housing market, focusing on interest rates and mortgage-backed securities. It explores the concept of a market bottom, highlighting the challenges of affordability for buyers and sellers. Nationally, home prices may not fall significantly, but pandemic boom markets like Boise and Raleigh could see corrections. The video emphasizes that while home equity may be preserved, sales volume is declining.

What is the Federal Reserve's current strategy regarding the housing market?

• Increasing interest rates and reducing mortgage-backed securities

• Lowering both interest rates and mortgage-backed securities

• Raising interest rates while maintaining mortgage-backed securities balance

• Lowering interest rates and increasing mortgage-backed securities

What is a significant challenge currently affecting the housing market?

• Lack of available homes for sale

• High affordability issues for both buyers and sellers

• Decreasing interest rates

• Excessive government intervention

How is the current affordability challenge impacting the housing market?

• Stabilizing home prices

• Encouraging more new constructions

• Decreasing the volume of sales

• Increasing the number of homes sold

What is expected to happen to home prices in pandemic boom markets like Boise and Raleigh?

• Prices will stabilize

• Prices will correct and decrease

• Prices will remain unchanged

• Prices will continue to rise

What is the expected trend for national home equity moving forward?

• It will decrease significantly

• It will fluctuate unpredictably

• It will increase rapidly

• It will be preserved