April 2010 PDX Metro Sales Stats

• 53% homes sold were 3 bedroom with average price of $254,962
• 44% closed in 30 days or less
• 20% closed in 121 days or more
• 43% buyers used conventional financing
• 31% buyers used FHA financing
• Closings were up by 7% last month (1769 vs 1641)

Mortgage Rates Reach 2010 Low As Stocks Crash

Mortgage rates inched lower yesterday as global investors continued to flock to risk free U.S. Treasury debt securities. This has been a constant theme in the rates market recently. However, while benchmark Treasury yields have moved considerably lower in a short time, mortgage rates have failed to keep pace with the "flight to safety" rally.


A flight to safety happens when investors are nervous about owning risky assets like stocks, but do not want to miss out on earning a return on their funds, so they allocate money into risk-free U.S Treasury debt to provide a safe-haven AND an investment return. To remind readers, as benchmark Treasury yields fall, prices of mortgage-backed securities move higher, which allows lenders to offer lower mortgage rates. As Treasury yields rise, mortgage-backed security prices are led lower, which forces lenders to push mortgage rates higher.