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This has to be the best unbiased analysis and explanation of our current mortgage mess that I have seen.  Without finger pointing in any specific direction it shows how everyone had a hand in the till.

60 Minutes Mortgage Meltdown

Selected quotes from the story below:

Developers started turning asparagus fields into subdivisions, and lenders handed out free money to anyone who wanted to buy.

"What do you mean by free money?" Kroft asks Jim Grant, the editor of "Grant's Interest Rate Observer" and one the country's foremost experts on credit markets.

"I mean free money. I mean you had to apply not to get a loan, almost. Sometimes you have to apply to get a loan, you almost had to apply not to get one," Grant says.

The borrowers often had sketchy credit, were financially strapped or lacked sufficient income to qualify for a standard mortgage. After a year of artificially low payments, the interest rates on subprime loans jumped all the way to ten or 11 percent.

If you have 13 minutes to spare this is well worth the time for a better understanding of the what's and whys.

Released on 5/30/2008 @ 10:16 am out of Salem on ap wire.  Quoting AP wire, "Housing foreclosure rates in Oregon are still just at .5% - half the national average and the 43rd slowest rate in the country.

I little late, however I have just updated the Portland Market Analysis which reflects a real mixed bag of results.  Pretty much spin it any way you like.  Is the cup half empt or half full.

WEALTH BUILDER ALERT

MT. TABOR PARK location. Are you looking for a fixer with potential? I have just viewed a property with incredible potential. Built in 1910 it needs most everything. Priced right at $325 I just pulled together a quick CMA of 18 homes in the park of similar size resulting in an average price of $444k and a high of $531k.

“Foreclosure Activity Hits Record Level in April” read the headline this week. A 65% increase in filings from a year ago according to RealtyTrac.com. Led by Nevada, California, and Arizona, Oregon ranked #23 of 46 recording a .37% decrease in foreclosure activity.  ReatyTrac Foreclosures

In 1980 we saw home sales plunge by 22%, 18% inflation, 8% unemployment and watched mortgage rates surpass 18% by September of 1981 dropping to 17% at years end.

The truth is: We are standing on the edge a wealth building opportunity not to be dismissed by media sound bytes. The present interest rates are some of the lowest in the past 40 years. We are in possibly best buyers market since World War II and I suspect there will be tremendous remorse in the next 5 years as people reflect on the would-a-could-a-should-a.

Since 1866 there has not been a period of “No Appreciation” of property values in the state of Oregon. The only questionable period may be during the market crash of the Great Depression as stock priced dripped to .05 on the dollar and real estate values dropped to .82 cents on the dollar. Since 1962 Oregon has shown an average appreciation rate of 5.1% per year. (Where would you rather have had your money)

Did you know that Oregon has the third lowest foreclosure rate in the US based on current inventories.

The fourth quarter data from the National Delinquency Survey released last week by the Mortgage Bankers Association shows, in general, deteriorating delinquency rates and an increase in foreclosures driven heavily by souring subprime loan performance.   On the other hand, fewer people are exposed to subprime products as some have switched out of these risky loans and banks have placed a virtual halt in new subprime mortgages origination.  The total subprime loans serviced declined 2.4 percent from the third quarter and 2.0 percent from the same period in 2006.

Insight and sound advice from Richard Gaylord, NAR President.

NAR President Richard Gaylord says consumers need to understand what’s going on in their own area. “There is no such thing as a national housing market – it doesn’t perform like the equities markets,” he says. “What’s really important for consumers is to make informed decisions based on individual needs, desires, and timelines in a given area. Most people plan to stay in a home for 10 years, and for buyers with a long-term view, housing is an excellent investment.”

Typical sellers purchased their home six years ago, with the median price in the third quarter of 2001 at $159,100. Despite the dip in the national median price over the past year, the median increase in value for home sellers who bought six years ago is 38.8 percent. “Nearly every market is showing positive long-term gains, with a home equity accumulation of $61,700 over the past six years for a typical U.S. home owner,” Gaylord says.