The Intelligence from The Economist Moves over: American house prices
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Sep 8, 2023 
Simon Rabinovich, U.S. economics editor for The Economist, reveals the surprising resilience of the American housing market despite skyrocketing mortgage rates. He discusses how unique features of the mortgage market are keeping prices high and the ongoing challenges for first-time homebuyers. Anne Rowe pays tribute to Isabel Crook, an anthropologist who navigated the complexities of China's communist transformation, reflecting on the balance of ideals and realities in her remarkable life. They explore the implications of these themes for today's society.
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Resilient Housing Market
- American house prices are rising despite high interest rates, defying typical market behavior.
- This is due to a "freeze" in the housing market, caused by homeowners unwilling to relinquish low mortgage rates.
Market Freeze Impact
- The housing market freeze's economic impact is mitigated by increased home remodeling and new builds.
- Homeowners, hesitant to sell, are investing in upgrades, and new construction thrives with less competition.
New Builds Thrive
- New-build homes are thriving due to increased availability and builders offering incentives like lower mortgage rates.
- Builders, with strong finances, prepay mortgages, offering buyers discounted rates and boosting demand.