US housing market splits: luxury runs on cash, entry-level stalls as rates top 7%

WSJ reports a growing divide in the US housing market. Luxury buyers using cash or large down payments are keeping the top tier resilient despite mortgage rates above 7%, while entry-level demand has stalled, forcing builders to offer incentives and cut prices. Data from First American shows luxury outperforming starter homes in 33 of 50 top metros. Toll Brothers sees 25% cash buyers; Lennar's average selling price fell.