In their recent round of elections, Greek voters elected candidates that opposed the terms of the country’s bailout (read: austerity measures). Should Greece back away from the agreement , the nation could go bankrupt and face the possibility of leaving the eurozone. What would this mean for the Greek, European and global economies? Possible chaos. Possible bounce-back. Read David McHugh’s article of the Associated Press for a concise summary of the possibilities. For more on how this could touch the U.S. economy, you can read our article.
Last Thursday, J.P. Morgan announced that it had lost $2 billion on a complex bet, and its stock plummeted by 9.28 percent the following day. The loss resulted in a fresh round of discussions about regulation for risky activity and put the spotlight back on federal regulators. For more on the complexities of financial regulation, read Kevin Hall’s article over at the Tribune.
Now for some good news. For the week ending May 5, jobless claims dropped by 1,000 to 367,000, and, overall, the number of people on unemployment was the smallest since July 2008. The figures suggest modest job growth. Fannie Mae turned a $2.7 billion profit in Q1 – its first period in the green since 2008.
Last week, Freddie Mac reported that average rates on the 30-year and 15-year fixed mortgages had hit record lows. In practice, this fact is basically useless, as it is (after all) an average, which suggests that plenty of banks offer rates well below this “record” average of 3.83 percent for the 30-year fixed and 3.05 for the 15-year fixed. Our rates were unchanged week-over-week, and we are still advertising our 30-year at 3.500 percent (3.582 percent APR) and our 15-year at 2.750 percent (2.917 percent APR). For more rates, read our rundown HERE.