Netanyahu has always maintained, and correctly so that there will be no negotiation when it comes to Jerusalem. It is, and always will be the Israeli capital. The construction of these housing units were always planned and explicitly excluded from the temporary freeze. Nothing has changed except the other parties incremental increasing expectations.
Saudi-led coalition air strike kills around 30 Yemeni civilians (Reuters)
from the article: Jerusalem council drops construction, apparently due to U.S. crisis