

Home affairs: America’s revealing property market
Mar 8, 2023
Simon Rabinovich, U.S. economics editor at The Economist, shares insights on the American property market's current trends and potential recession indicators. He highlights the effects of rising mortgage rates on housing activity and the tension between affordability and inflation. Meanwhile, James Miles, China writer at large, discusses the challenges plaguing Chinese football, including corruption and administrative failures. They also delve into the controversial use of rap lyrics as court evidence, exploring its implications for artistic expression and justice.
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Housing Market as Economic Bellwether
- The U.S. housing market is crucial for understanding the economy's performance amid higher interest rates.
- It's a key indicator of whether the Federal Reserve's actions will lead to a soft landing or a recession.
Unexpected Housing Market Rebound
- The housing market showed an unexpected rebound at the start of 2023, with increased new home sales and buyer confidence.
- This rebound could be positive if it remains controlled, supporting growth without excessive price increases.
Developer Tactics and Market Concerns
- Developers are using buy-downs of mortgage rates to attract buyers, offering rates below market value.
- This tactic could create artificial inflation in house prices and hinder the price correction needed for affordability.