When the Federal Reserve started increasing interest rates in 2022, the housing market was expected to be the first casualty. However, while there was a temporary slowdown in construction and hiccup in prices, the market quickly rebounded in unexpected ways. Despite higher borrowing costs, Americans continued to show keen interest in buying homes. The current housing market defies conventional economic predictions, with some sectors remaining resilient while others have come to a standstill. There are also sharp divisions within the market, with existing homeowners benefiting from low pre-2022 rates while potential buyers are faced with unaffordable options. The market is now on a precarious edge, poised to tumble if rates remain high or the economy falters. It has become a strange and complex market, challenging traditional notions of how housing markets should behave according to economics textbooks.