Recent US housing market data has signaled a potential turnaround in housing construction and new home sales. Permanent site residential structures investment may begin to contribute positively to US real GDP growth if the recent pickup in housing starts is sustained. Housing construction is set to rise because of an extremely low level of existing homes available for sale. Existing home inventories and sales are low because US households do not want to give up low-rate mortgages. This underscores that US monetary policy is currently restrictive, not easy.