Nice story from @bencasselman on the missing housing recovery. Lending standards matter, but id add that full employment will help a lot too when we finally get ithttps://www.nytimes.com/2019/10/31/business/economy/fed-mortgage-rates.html …
I’m not so sure about that. They face different costs of capital. Investment funds are paid to take capital, while most households are already carrying a bunch of debt
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the investment fund has a higher hurdle, and to a household rent spending and mortgage don’t look very different (and a mortgage is probably easier to miss payments on)
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Just to be clear: I’m not trying to make an argument. I’m trying to understand why the mortgage market isn’t clearing at a higher supply
End of conversation
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