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The Intelligence from The Economist

Moves over: American house prices

The Intelligence from The Economist

The Economist

Global News, Daily News, News

4.53.7K Ratings

🗓️ 8 September 2023

⏱️ 23 minutes

🧾️ Download transcript

Summary

The highest interest rates in years should lead to a fall in house prices. But peculiarities of America’s mortgage market are driving them up. Egg-freezing was supposed to give women more control over childbearing; we look at scant data showing how successful it really is (10:57). And remembering Isabel Crook, an anthropologist who embraced China’s communist transformation, warts and all (15:44).  

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Transcript

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0:00.0

Hello and welcome to the Intelligence, from the Economist. I'm Jason Palmer.

0:07.8

And I'm Aura Ugunbi. Every weekday we provide a fresh perspective on the events shaping

0:13.7

your world.

0:15.9

Egg freezing is supposed to give women the opportunity to delay having children. Their

0:23.6

fertility is well frozen in time. But as yet, there's not much data on how successful

0:29.1

it is. We pick through some of the best numbers that are available.

0:34.4

And Aura Bittrary's editor remembers Isabel Crick, the Canadian anthropologist who saw

0:40.3

the founding of the Chinese Communist Party and became an ardent supporter of its cause

0:45.2

despite its horrors.

0:55.8

Her ownership is a cornerstone of the American dream, but it has rarely been harder to attain

1:10.6

than today. Those looking to enter the property market face costly mortgages and limited

1:16.5

choice. They also face high property prices, despite changes from the Federal Reserve.

1:23.1

In July, the Fed raised interest rates yet again for the 11th time since March 2022.

1:47.1

In that time, that bank rate has gone from near zero to more than 5%, and according

1:52.7

to Chairman Jerome Powell, there may well be more hikes on the horizon.

1:58.2

We are prepared to raise rates further if appropriate, and intend to hold policy at a restrictive

2:03.6

level until we are confident that inflation is moving sustainably down toward our objective.

2:10.4

Such rate jumps would normally address at least one of the problems facing prospective

2:14.4

homeowners, cost, even as it makes loans harder to come by. But while the property sector

2:20.5

is usually sensitive to interest rate changes, the US housing market remains stubbornly buoyant.

2:28.8

Interest rates in America have gone up quite dramatically, and that has pushed mortgage

2:32.8

rates to their highest in four decades. Simon Rabinavitch is the economist's US economics

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