PDX Real Estate 141: Mark Aalto on Why Interest Rates Are on the Rise

A lot is happening in the world right now. The bond market took a
dive, interest rates are rising, inflation is prominent, gas
prices are up, and there’s a war in Europe.


All of these things are interconnected, so how are they going to
affect the real estate market going forward?


Mark Aalto is a lender and economic forecaster who gives great
insight into things that are commonly known among lenders, but
might be new, helpful information to realtors. On this episode of
the Portland Real Estate Podcast, Mark joins cohosts Steve Nassar
and Joe Fustolo to discuss the current market and his predictions
for the rest of 2022.


Mark shares his perspectives on current events in the real estate
industry, how the stock and bond markets affect interest rates,
and how the industry is accounting for an appraisal gap in the
homebuying process.


Listen in for insight on why interest rates stayed low throughout
the pandemic and have now increased significantly since the start
of the year.
Key Takeaways

Why the stock and bond markets heavily dictate financing rates


How financing rates have increased significantly since the
beginning of 2022


How rates have fluctuated with the stock market throughout the
Covid-19 pandemic


Why Mark would rather do purchases than refinancings with his
customers


Mark’s perspective on the current state of the bond market and
how it is affecting interest rates


Mark’s predictions of what rates will look like throughout the
rest of 2022


Mark’s experience with loan programs and why they are typically
underwhelming


Why buyers cannot get recast for government loans and need to go
directly through the lender


The details of a federal judge recently blocking the new Oregon
law banning “love letters” from prospective homebuyers and what
that means for the future of the buyer/realtor relationship


Mark’s perspective on the appraisal system and how the industry
is accounting for an appraisal gap
Connect with Mark

Mark on LinkedIn


Mark on Facebook


Mark on Twitter


Mark’s Team on Advantage Mortgage
Connect with Joe

Soldera Properties


Joe on LinkedIn
Connect with Steve

Steve’s Team at Premiere Property Group


Steve on LinkedIn
Resources

USA Today: Federal Judge Blocks Oregon Law Banning ‘Love Letters’
From Homebuyers Over First Amendment Rights