Mortgage Backed Securities are up 11/32 today in early trading on the news that they Fed will start purchasing MBS today in a $500 Billion plan. This is down from a high of 20/32. While the markets initially reacted favorably to this news, they have pulled back some.

According to MBSQuoteline, the Fed will buy as much as $500 billion of MBS by the end of the second quarter, and the weekly purchases will be disclosed every Thursday.

Construction Spending has also been released today While it came in down .6%, this was less then expectations of 1.2%

This week holds a lot of high impact news, so it could be volatile rate wise. In addition, we will hear more about President elect Oboma's economic stimulus package and see how the markets react to it. The conflict in Gaza continues to instill concerns in the oil markets.

Locally, we are still getting over the effects of storm after storm.

According to Zillow.com, Greater Portland area homes have lost approximately 8.9% in value over the last 12 months ending September 08. The chart below shows some interesting stats.
 

Medford and Bend were in double digits and other areas fared better.

What will this year bring? ard to say. With rates down, lender guidelines more stable and the election over, let's hope that at least for us in Oregon things will stablize and we can get back to normal appreciation of 3-5%

Larry Morris is a Certified Mortgage Planning Specialist with American Nationwide Mortgage Company in Newberg, Oregon. He specializes in USDA Guaranteed Rural Home Loans, FHA Purchase and Refinance, FHA 203k Rehab loans, Sect 184 Native American loans, Hobby Farm loans and conforming purchase and refinances in the states of Oregon and Washington.

He can be reached at 503-421-0096, or larry@PDX-Mortgage.com.

www.PDX-Mortgage.com

OR License ML-3259
WA License WA-510-LO-51175

.

APR rates are subject to change based on lender's normal credit guidelines and market conditions.