Associated Press & Andrea Calcagno
 
May 28, 2009
 
MEDFORD, Ore. -- A new report shows the Oregon foreclosure rate has jumped to a level seen only once in the last 30 years.
 
The Mortgage Bankers Association report released today shows 2.21 percent of Oregon's 636,000 outstanding mortgages were in some stage of foreclosure in the first three months of the year.
 
The Oregonian newspaper said the foreclosure rate is the highest since it hit 2.23 percent during a recession in early 1985.
 
The Sun Belt states of California, Florida, Arizona and Nevada continue to suffer the worst of the mortgage troubles with nearly half the foreclosure starts nationally.
 
Meanwhile, despite the statewide increase, experts say that in Jackson County foreclosure numbers are stabilizing.
 
"Locally we're actually seeing foreclosures going in the other direction. Our inventory for homes for sale, about two months ago, that portion of the inventory was a little over nine percent. This last month it dropped by a full percentage point," says Steve Blanton with Rogue Valley Association of Realtors.
 
Blanton says the statewide foreclosure increase could be linked to unemployment.
 
"From what I can see at this point, the most recent wave of foreclosures has more to do with the jobless rate that's out there right now. People are just having more traditional difficulties paying their mortgage payments," says Blanton.
 
Lower housing prices are also enabling new people to buy.
 
"With the housing prices dropping the way they are because of the foreclosures and repossessions, (they've) put a lot of people back in the market to purchase, mostly the renters that couldn't afford it," says Brett Morris with People's Bank.
 
Interest rates are sweetening the deal for home buyers.
 
"I'll say they are historically low. People say, 'well what's that mean?' And I started in this business in the 80s and it was like 15-16 percent in the 80s. So its down a lot. I've never actually seen them this low before," says Morris.
 
As foreclosures continue to sell, the market may pick up.
 
"If we see this trend continue for a couple more months, maybe it's a little bit early to say we are in recovery. But maybe we can start to have some optimism about that," says Morris.