Shares of major homebuilders rose sharply Thursday after the government unveiled a new plan to stem the significant rise in mortgage foreclosures.
The iShares Dow Jones U.S. Home Construction ETF (ITB) rose... 4% to $17.75.
The S&P Homebuilders SPDR (XHB) traded up 4% to $19.97...
House Financial Services Committee Chairman Barney Frank announced a proposal for legislation Thursday to allow the Federal Housing Administration to insure and guarantee refinanced mortgages that have been significantly written down by mortgage holders and lenders.
The program would permit FHA to provide up to $300 billion in new guarantees that would help to refinance at-risk borrowers into viable mortgages.