Because the housing market is sensitive to changes in interest rates and thus to monetary policy, I'll conclude by discussing how housing is being affected by the Federal Open Market Committee's (FOMC) efforts to achieve our dual mandate of maximum employment and stable prices.
Recent data on economic activity suggest that after a slight contraction in gross domestic product in the first half of this year, the economy is posed for modest but below-trend growth in the latter half. Meanwhile, the labor market remains strong and very tight. Employers added 315,000 jobs in August, well above the rate needed to keep up with population growth.