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While bad economic news is still all that you see in the headlines - there is some good news out there!

Mortgage rates today are dipping towards that 5% - could actually hit that rate today or tomorrow - and many economists and analysts are forecasting we could see mortgage rates for 30 year fixed rate loans drop below *5% in the coming month or so. If you are thinking about a refinance or purchase, you should definitely get yourself pre-approved as quickly as possible. There is a huge advantage to short term locks over the more familiar 30 day rate locks. But your loan must be pre-approved, including an appraisal before we can take advantage of those short term locks.

Virtually all lenders are reporting rates around *5.125% today for those of you with credit scores at 720 or better and with loan to values under 95%.

Other news

Oil is under $46/barrel today, and expected to continue to drop towards $40/barrel as demand remains low.

Retail sales, in spite of "Black Friday" continue lower than retailers would like to see, with the exception of sales at Walmart.

The big 3 auto-makers are on Capital Hill today pleading their cases for a bailout.

But Credit remains tight and guidelines still very tight. There are no lenders out there willing to lend to anyone who looks like a potential foreclosure waiting to happen.

Following is some housing market news I received today. You might want to take a look at how housing values in the Portland area compare to the rest of the country - and heave a sigh of relief that we are far from the worst in the country. Still our inventories are very high, and great values abound right now.

Be very wary of letters arriving in many mailboxes about "we can get your loan re-negotiated for a fee." When economic times get tough, the scam artists come out in droves with many creative ways to separate you from your money. It does not take too many $4000 fees from victims, to set up a nice office and look very professional. There are agencies out there trying to help "under water" homeowners, such as Hope Now. Before you write anyone a check to "help" you, make sure you investigate the source very carefully. If you are unable to determine if the agency is legitimate, try Channel 2 (local ABC) news. They have an excellent help and investigation source for consumers in the Portland metro area and can get into places most of us can't access.

Here's that information about nationwide housing markets.

Going Down
With all the downturn in the real estate market the reality is not all areas are doing poorly and some are actually increasing in value.

So what areas are still going up?

Lancaster, Penn.
Population: 498,465
Median home price: $206,000
12-month change in home value: +1.6%
Affordability index: 3/10
Homes sold this year: 1,166
Home value vs. national average: Same
Top employer: R.R. Donnelly & Sons publishing company

Locals say Lancaster is a conservative lending market, which limits foreclosures.

Clarksville, Tenn.
Population: 265,062
Median home price: $130,000
12-month change in home value: +1.4%
Affordability index: 3/10
Homes sold this year: 2,081
Home value vs. national average: -37%
Top employer: Trane Corporation

The housing market is kept active by Clarksville's proximity to Fort Campbell. Traditionally a manufacturing town, the city also offers a robust retail economy, driven in part by Austin Peay State University.

Albuquerque, N.M.
Population: 832,774
Median home price: $172,000
12-month change in home value: +1%
Affordability index: 3/10
Homes sold this year: 7,100
Home value vs. national average: -17%
Top employer: Intel

Active retirees and immigrants have also migrated to the area, ensuring a well-rounded housing market. Experts project 9% population growth between 2006 and 2011, compared to 6% nationally.

Burlington, VT

Population: 145,360
Median home price: $250,000
12-month change in home value: +1%
Affordability index: 4/10
Homes sold this year: 592
Home value vs. national average: +21%
Top employer: IBM

Burlington's small-town mentality ensures that home lenders maintain personal relationships with their clients and help them stay within their spending means. Technology, health care, and education drive the local market.

Pittsburgh, Penn.

Population: 2,355,712
Median home price: $137,000
12-month change in home value: +.1%
Affordability index: 2/10
Homes sold this year: 7,634
Home value vs. national average: -33%
Top employer: University of Pittsburgh Medical Center

Despite its reputation as a gritty city of industry and steel, Pittsburgh is now driven by the health care and technology sectors.

Johnson City, Tenn.

Population: 193,554
Median home price: $120,000
12-month change in home value: -.4%
Affordability index: 3/10
Homes sold this year: 1,134
Home value vs. national average: -41%
Top employer: East Tennessee State University

What areas to avoid?

Home prices in the 10-city index have fallen for 26 consecutive months. The decline has broadened over the past 12 months, with prices dropping in every city of the 20-city index during September.

In the weakest market,
Phoenix, the 12-month loss came to 31.9%.
Las Vegas prices plummeted 31.3%
San Francisco recorded a 29.5% decline
Miami, down 28.4%
Los Angeles, down 27.6%;
San Diego, down 26.3%;
Washington, down 17%;
Chicago, down 10.1%;
New York, down 7.3%;
Boston, down 5.7%; and
Denver, down 5.4%.
Detroit, down 18.6%;
Tampa, Fla., down 18.5%;
Minneapolis, down 14%;
Seattle, down 9.8%;
Atlanta, down 9.5%;
Portland, Ore., down 8.6%; and
Cleveland, down 6.4%.