Good morning.
Coins2Day’s Chris Matthews unpacks the latest Fed data showing mortgage debt is growing 1.9%, its fastest rate since the Great Recession. Add that to Census Bureau data showing sales of newly constructed homes are up 17.8% year-over-year, and data from the National Association of Realtors showing home sales were up 6% in October from a year earlier, and you have what looks like the beginning of a boom.
To be sure, this isn’t anything like the frenetic pace that preceded the recession, when mortgage debt was growing more than 10% a year. We may not see those growth rates again, given that population growth and household formation have slowed. But if you are looking to sell a house before the next recession, now may be the time to start cleaning the attic.
Also this morning, we are releasing Roger Lowenstein’s smart piece, written for our annual Investor’s Guide, on why colleges are getting a “C” – if not an “F” – in investing. Yale’s stunning success with alternative investments has spawned a bevy of imitators in recent years, and created a boon for hedge funds. But the results are now in, and they are pretty dismal. The average college endowment hasn’t beaten the market over the past decade. Time for the folks in the ivory tower to rethink their investment strategies. Click here to read Roger’s story.
Enjoy the weekend.
