Realty Trust Group

Wine and appetizers will be provided by Travis Olson of Olson Mortgage Group at Premier Mortgage Resources.

The exhibit will be displayed in our offices through the end of June.

Realty Trust Group 600 A. Avenue Lake Oswego, OR 97034 Phone: (503) 675-3300 Email: LakeOswego@realtytrust.com

Topics: About the artist
Categories: Company News
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Last week Greece had their elections, and in a reaction to the severe austerity programs they have taken on (in order to show some signs of wanting to pay down their debt so they can stay in the European Union), minority parties on both the far right and far left fringes took large percentages of the vote.

In a parliamentary system, if no one party has enough votes to govern on their own, they have to find partners to form a coalition with other groups. If Greece is not able to form a new coalition government, they will have a new election on June 17th to try again.

It is now looking more likely that Greece will exit the European Union, and strike out on its own. Greece by itself is a small economy and not much of a global factor, but the fear is that if Greece exits, what will happen to Spain, and Italy and the European Union itself. This is the financial domino theory in action, and if Greece falls, what happens next? This whole drama has been going on for a long time, but experts are thinking the end game is coming soon.

The other big news this week was JP Morgan’s announcement of trading losses of at least $2 billion dollars. This wasn’t a rogue trader making a bad bet, but part of their risk management strategy, approved at the very top of the corporate chain.

This has been embarrassing for CEO Jaime Dimon, who has been viewed as the one who got it right in the financial crisis, and has been a big opponent of more financial regulation. The trade involved the same derivatives that were involved in the collapse back in 2008, and is a reminder that with vast leverage and a betting mentality in the financial system, there are still risks to the system that have not been addressed.

Mortgage bonds traded in a range all week. Several times they approached their best points historically, before pulling back. Mortgage rates are at or near their best levels ever. What happens next will largely depend on the news out of Europe, but if you are looking to buy a new home or refinance your existing mortgage, the timing is great and rates are low. Don’t get stuck standing when the music stops.

Categories: Mortgage and Financing
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The two dominant economies in Europe have been Germany and France, and up until now they have held together on the policy of austerity as the means to solve Europe’s debt crisis. Many of the smaller and more troubled countries, including Greece and Spain, have been forced to cut spending drastically, which has increased civil unrest.

The French Socialist economic position is that the only way to get out of the hole is to spend more and grow their way out--a direct contradiction to the German plan.

The Socialist plan will have lots of support from those countries in the worst shape, but without a consensus plan, it means more conflict, and a great chance that each country will pull back and work toward their best interests rather than a unified plan for the European Union as a whole.

Bottom line: expect the unexpected and more volatility in the financial markets--and interest rates--as a result.

Categories: Mortgage and Financing
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