Daily Reads 1/10/2019
Good morning! Today we are reading about weak demand for US Treasuries, millennials debating whether to invest in real estate or the stock market, and how the recent drop in mortgage rates has lead to a revival of housing activity. We hope you find these articles insightful and practical.
INVESTING & THE ECONOMY
Of the $2.4 trillion of notes and bonds the Treasury Department offered last year, investors submitted bids for just 2.6 times that amount, data compiled by Bloomberg show. That’s less than any year since 2008. The bid-to-cover ratio, as it’s known, fell even as benchmark Treasury yields soared to multi-year highs in October, before falling back to their lows last month.
How people view the best way to build their wealth — real estate vs. stocks — was partly influenced by their age when the crisis happened. Indeed, the 35-44 year-old range was prime home buying age when the housing bubble popped, likely explaining why 52% prefer putting money in the stock market. Every other age range viewed real estate as the better investment of the two.
Apple rattled global markets last week as it cited cooling activity in China as a risk to revenue, underscoring expectations for the second-largest economy to lose steam. And it was far from alone in its warning.
A sharp drop in interest rates to the lowest level since April sparked a mini-boom in refinancing. Those applications surged 35 percent week-to-week to their highest level since July. Volume was still lower by nearly 22 percent than a year ago, when the average rate on the 30-year fixed mortgage was 51 basis points lower.
Young adults incur medical collections debt at a higher rate than older age groups, according to a study published in Health Affairs, a health policy journal. That puts millennials — those born 1981-1996 — in the crosshairs. “There are a number of things that add up that make younger adults more prone to this kind of debt,” says economist Ben Ippolito, one of the study’s authors.