The European Union has agreed upon a deal to help Greece out of its financial troubles, which could avert a contagion effect across the 16-nation bloc. The news, while scant on details, was enough to push stocks and exchange traded funds (ETFs) into positive territory.
The 16 nations that make up the European Union are joining forces to help Greece stave off further economic blows. Marcin Grajewski and Julien Toyer for Reuters say that although the details are still up in the air, the bloc’s leaders suggested it could include some form of loans to Greece to help it service its debt and avoid a damaging default. Europe’s ETFs are negative today. The SPDR DJ Euro Stoxx 50 (NYSEArca: FEZ) is down 0.7% so far today.
Reuters reports that state applications for unemployment benefits has dropped off last week, indicating that positive job growth may be on the horizon. The White House predicts that 95,000 jobs will be created this year.
Overall foreclosure filings dropped off about 10% between December and January. Les Christie for CNN Money reports that this contrasts with the 15% spike in filings from one year ago, as well as the number of people who had their homes repossessed, which jumped 31%. Most industry observers also expect home prices to decline further this year before they stabilize. That will push more homeowners underwater, meaning they’ll owe more on their homes than they are worth. [For more news about homebuilders, visit our homebuilders category.]
- SPDR S&P Homebuilders (NYSEArca: XHB)
The real estate market should at least get a lift from rates on 30-year mortgages, which remain at lows not seen in years. The rate on a 30-year fixed mortgage dropped below 5% this week, reports the Associated Press.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.