Oklahoma Mortgage Group - Mike David

If you’ve been wondering why mortgage rates remain stubbornly high, the answer lies in the strength of the U.S. job market and its impact on key financial indicators like the 10-year Treasury yield. Let’s break it down: Mortgage rates often follow the 10-year Treasury yield, which reflects investor sentiment about the economy. As of early 2025, the 10-year Treasury yield is holding near 4.6%, a level that continues to support elevated mortgage rates. But why is the yield so high? The resilience of the labor market plays a significant role. Recent data shows that jobless claims—an indicator of layoffs—remain low, with seasonally adjusted claims at just 211,000 in December 2024. This signals a strong job market, which reassures investors that the economy can withstand higher interest rates. As a result, the Federal Reserve has less incentive to cut rates, and bond yields stay elevated. This dynamic has a direct impact on mortgage rates. For prospective homebuyers, it means rates may not ...

If you’ve heard about the recent Federal Funds Rate cut by the Federal Reserve, you might think mortgage rates are set to drop immediately. However, mortgage rates are influenced by more than just the Fed’s actions. Factors like inflation, the job market, geopolitical events, and other economic variables all play a role. While the Fed’s moves may eventually lead to lower mortgage rates, the process will be gradual and potentially uneven. Rather than trying to time the market, focus on the aspects you can control to position yourself for success in today’s housing market. 1. Your Credit Score Your credit score significantly impacts your mortgage rate. Higher scores often lead to lower rates and better terms. Small improvements to your score can make a big difference in your monthly payment. Reach out to a loan officer to understand your current score and how to improve it. 2. Your Loan Type From conventional to FHA, USDA, and VA loans, each type offers different rates and terms. Explori...

 Did you know the typical homeowner’s net worth is roughly 40x greater than a renter’s? It’s a staggering statistic that highlights the profound financial benefits of homeownership. Owning a home is the #1 way to build wealth in the U.S., and it’s a key step toward financial security and independence. Here’s why: when you own a home, your net worth grows as you pay down your mortgage and as home values rise over time. This wealth-building power, often referred to as equity accumulation , is something renters miss out on. Renters pay monthly for housing but don’t get to reap the rewards of equity or appreciation, which are two major drivers of homeowner net worth. The numbers tell the story. According to data from The Federal Reserve, homeowners consistently build equity while renters’ financial growth remains limited. For example, while home values have risen significantly over the last decade, renters’ net worth has increased only marginally. This growing gap showcases how own...

With rising home prices and fluctuating mortgage rates, having access to the right resources can make all the difference. One resource you should know about is the growing number of Down Payment Assistance (DPA) programs available to homebuyers. According to Down Payment Resource, 29 new programs were added in Q3 alone, bringing the total to 2,444. That’s 192 more programs than last year—an 8% increase in opportunities to help buyers like you achieve homeownership. Why does this matter? Many DPA programs provide significant financial assistance. The average benefit is roughly $17,000, which can go a long way toward covering your down payment and other home-buying costs. Whether you’re a first-time or first-generation buyer, or even looking into affordable housing options like manufactured or multi-family homes, there’s likely a program that fits your needs. Let’s make homeownership a reality for you! Call or text me today at 918-361-1550 , or click here to book a quick phone chat to d...

 You may have heard some recent buzz about the economy and concerns about a potential recession. It's completely understandable for this type of talk to raise worries about the possibility of a housing market crash. However, there's good news – there's no need to panic. The housing market is not set up for a crash right now, and here are two key reasons why. Demand for Homes Is Higher than Supply One of the main reasons the housing market crashed in 2008 was due to an oversupply of homes. But the situation today is quite different. A balanced real estate market typically has about six months' supply of homes. When there's more than that, it signals that supply outpaces demand, and prices could fall. However, when there's less than that, it means demand is higher than supply, which tends to keep prices stable or push them higher. The graph below shows that in the lead-up to the 2008 financial crisis, there were 13 months of housing supply, which was far too much....

When you’re ready to buy a home, it’s essential to understand all the costs involved. While your down payment is a significant factor, don't overlook closing costs . As your trusted Tulsa mortgage lender , I’m here to break it down for you. What Are Closing Costs? Closing costs are additional fees that come with finalizing your home purchase. Every buyer pays these, so it’s important to plan for them. Here’s a breakdown of the typical fees: Application fees Credit report fees Loan origination fees Appraisal fees Home inspection fees Title insurance Homeowners insurance Survey fees Attorney fees Some of these costs are one-time expenses, while others (like homeowners insurance) are ongoing responsibilities after you move in. How Much Are Closing Costs? On average, closing costs range from 2% to 5% of the home’s purchase price . For example: If you're buying a home for $422,600 (the current median price), your closing costs could be between $8,452 and $21,130 . Keep in mind tha...

As we move toward 2025, the housing market is already shaping up to be a more favorable environment for buyers. If you’ve been waiting for the right moment to make your move, here’s what the latest forecasts predict. Mortgage Rates in 2025: Projected to Come Down With inflation cooling, Tulsa mortgage rates are expected to decline throughout 2025, making home loans more affordable for buyers. As per recent projections (as of September 2024), interest rates from major institutions like Fannie Mae, MBA, NAR, and Wells Fargo suggest a gradual reduction: Q1 2025 average: 6.30% Q4 2025 average: 5.98% This is great news for anyone considering applying for a Tulsa home loan . Lower interest rates can help you save significantly on your mortgage in the long run. More Homes Expected to Sell in 2025 The lower Tulsa mortgage interest rates are projected to boost home sales. The forecast suggests an increase in buyer activity, with the total home sales reaching up to 5.7 million units nationwide...

Good news! Mortgage rates have started to trend down a bit. While this is great for anyone looking to buy a home, it's important to remember that rates can still fluctuate as they're influenced by several factors. The economy, inflation, and even decisions made by the Federal Reserve all play a role in these changes. It’s true that rates have been easing, but you might still notice some bumps along the way as new economic data comes in. Odeta Kushi, Deputy Chief Economist at First American, puts it best: “The ongoing deceleration in inflation, coupled with the Federal Reserve’s recent indication of potential rate cuts [in 2024], suggests an environment supportive of modest declines in mortgage rates. Barring any unforeseen circumstances and resurgence in inflation, lower mortgage rates could be on the horizon, but the journey towards them might be slow and bumpy.” In short, while you could see lower rates in the future, it’s a good idea to be prepared for some fluctuations alon...

  Positive inflation news this morning has Tulsa mortgage lenders hopeful that the recent uptick in interest rates might be leveling off. If you've been considering buying a home in Tulsa, this could be a sign that it's time to act. What's Happening with Tulsa Mortgage Rates ? Recent increases: Over the past few weeks, we've seen interest rates climb slightly, which has caused some buyers to pause. Today's news : New inflation data released this morning is lower than expected, which is good news for anyone looking for Tulsa home loans. Lower inflation generally helps keep mortgage interest rates stable or even nudges them lower. The outlook: While we're still waiting on additional economic data to be released this week, the early signs are encouraging. It's possible that we've seen the peak of this recent rate increase. What Does This Mean for Tulsa Home Buyers? Opportunity: If you've been pre-approved for a mortgage or are considerin...