My New Blog

From what I have gathered over the past couple of weeks, bailing out the financial sector is very important.  Not only does it affect the real estate and mortgage areas of the economy, it affects us all.  Regardless of why they are in this position, if the financial institutions are allowed to fail completely, there would be no getting a loan, anywhere.  The economy would stop working correctly.  No lending, no borrowing.  I think we will better off not allowing that to happen.

Strangely enough, a downturn in the market helps mortgage rates.  When people flee the market, they often turn to bonds.  Increased demand in bonds, in turn reduces the bonds yield.  That helps reduce mortgage rates.  Needless to say, rates on mortgage loans in the Portland area are VERY LOW.