Avoiding collapse: Barclays PLC (LON: BARC) and Lloyds Banking Group (LON: LLOY) aim higher

Barclays PLC and Lloyds Banking Group find a foothold

In brief: Barclays PLC (LON: BARC) and Lloyds Banking Group (LON: LLOY) may begin to rise in value against the U.S. mortgage refinancing and the banking sector recovery.

The British banking sector may rise high today because of U.S. good news. Barclays PLC (LON: BARC) shares dropped in price up to 324.05 points, falling to -0.70 (-0.22%). Lloyds Banking Group PLC (LON: LLOY) went up to 70.85 points, gaining +0.22 (0.31%) in early trading.

According to the Mortgage Bankers Association of the United States the number of refinanced mortgage contracts increased by 17% (for the week ending August 13), reaching its highest level since May 2009. The number of new mortgage contracts fell by 3,4%. The total number of mortgage contracts increased by 13%. Thus becomes apparent tendency of the old mortgage re finance contracts for new conditions. The reason for this phenomenon is to reduce the refinancing rate on a background of increasing unemployment in the country, which has long been kept about 26 years maximum.

Anna Krostenski
2010-08-19 08:01, Economics.

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