Stocks and exchange traded funds (ETFs) are see-sawing this morning as investors weigh the economy in the wake of mixed news.
New home sales in September posted a surprise increase of 2.7% while prices fall, reports Martin Crutsinger for the Associated Press. The median price is down 9.1% year-over-year to $218,400, the lowest level since September 2004. At that time, the country was still in a five-year housing boom.
The increase in sales last month still leaves them 33.1% below last year’s level.
One of the key issues in the credit crisis is the seizing up of the credit markets, and lending rates between the United States and Europe showed signs of heading just barely lower. This suggests there are still concerns that are keeping credit conditions tight, says the Associated Press. The London Interbank Offered Rate, or Libor, dropped just slightly from 3.52% to 3.51%.