Oklahoma Mortgage Group - Mike David

  Picture this: the sun setting over a tranquil beach, the scent of freshly brewed coffee wafting through the air, and not a worry in the world about bills or financial constraints. This idyllic retirement dream is what most of us aspire to achieve. However, the harsh reality is that only 5% of retirees can bask in this independence without relying on social security payments. If you're determined to savor the sweet taste of freedom in your golden years, it's time to think beyond the norm and embrace the power of real estate as a cornerstone of your long-term financial strategy.   The Hard Truth   As we delve into the sobering statistics, it becomes clear that depending solely on social security payments can lead to a life of financial uncertainty. While the vast majority of retirees find themselves tethered to these payments, only a fortunate 5% enjoy true independence in their retirement years. This reality check should jolt us into action, compelling us to seek ave...

We find ourselves on the cusp of a significant market reset following recent turmoil caused by investors shorting mortgage-backed securities. To provide some clarity, when investors take a short position, they essentially bet on the failure of a security. In this case, the focus is on mortgage-backed securities, and as these securities approach predefined levels, many investors are poised to reinvest in them. (Here is a graphic explaining what mortgage-backed securities are and how they are created) This potential influx of reinvestment holds the power to invigorate the markets and potentially lead to a decrease in interest rates. However, our optimism is tempered by this morning's robust jobless claims report, signaling potential economic challenges ahead. Adding to this, tomorrow's address by Federal Reserve Chair Powell, set against the backdrop of the Jackson Hole summit meeting, is expected to shed light on the Fed's upcoming strategies. Should Powell hint at the need ...

Should I wait to buy a house? What are interest rates going to do? First, let me say that I completely understand your hesitancy. With high interest rates and soaring house prices, anyone could argue that it seems like a terrible time to buy a house. However, let's set aside opinions and focus on some facts. To predict where interest rates are headed, we need to look at their past behavior and reasons. In history, interest rates mostly followed inflation, except for temporary cases. Why is there inflation now? It is estimated that COVID caused $14 trillion in economic damage to our country. Putting so much money into the economy leads to inflation for years. While this might oversimplify the problem, it's a big reason. Printing lots of money makes things cost more and reduces the dollar's value. Healthy inflation is beneficial. Historically, during our strongest economic periods, inflation hovers around 2%, which the fed aims for. This target indicates robust and st...

Picture this: remember that big financial mess back in the day called the Great Financial Crisis (GFC)? Well, that totally changed how we see things in the money world. Back in the disco era (the 70s and 80s), interest rates were like a lazy river, just chilling at 1-3%. Then COVID came along, threw a tantrum, and rates started acting like a rollercoaster. It's been a bit of a shocker for us. Now, imagine this: some smarty-pants folks think that 4.3% interest rates for a 10-year loan is way too high, and they thought buyers would be lining up for cheaper deals. But guess what? When lots of folks are all betting on one thing, the market tends to flip the script on them. Think of it like this classic saying: "The market does the opposite just to make traders scratch their heads." But peek behind the scenes, and you'll see something funny. Big money managers (they're the ones playing with 10-year loans) really like high interest rates. The higher, the better, accor...

Alright, folks, let's break it down! Yesterday, the Fed raised interest rates by .25 basis points, which was totally expected by the money gurus. It's like they had it on their radar way before it even happened, and the lenders were already like, "Yeah, we saw that coming, no big deal!" So rates saw virtually no movement from the announcement. But wait, the real drama happened during Fed chair Powell's press conference. He dropped some lines that made investors go all ears. Instead of the usual "Let's raise rates and keep 'em high!" stance, he said, "Hey, maybe we'll take a chill pill and see how things play out before hiking again." And guess what? The market went like, "Oooh, we like this softer tone, Mr. Powell, keep it coming!" Buuut, today wasn't so peachy. There were these big reports on GDP, durable goods sales, and jobs, and they were all screaming strong! Sounds good, right? Nope! The market was like, "Ho...

  Navigating the current real estate market can be challenging due to high home prices and significantly increased interest rates compared to previous years. As the average rate on 30-year loans approaches 7%, according to Freddie Mac, it's uncertain whether rates will remain high in the future. However, there are strategies you can consider if you're looking to purchase a home in this environment.   1. Buy now, refinance later : One option is to buy a house at the current interest rate and plan to refinance your mortgage when rates inevitably drop. By doing this, you can take advantage of potential rate decreases in the future and potentially save money.   According to Mike David, Producing Branch Manager at the Oklahoma Mortgage Group, mortgage refinancing is a particularly good option for those searching for average-priced homes, as their value will only increase in price as time goes on. "They will encounter the most competition," David says. "A propert...

  In today's real estate market, where interest rates are on the rise, potential homebuyers may feel hesitant about entering the market due to affordability concerns. However, there is a solution that can make purchasing a home more manageable and alleviate financial burdens—the buy down option. Two common strategies to consider are the 3-2-1 buy down and the 2-1 buy down. These buy down programs allow buyers to lower their initial interest rates and monthly mortgage payments for a certain period, typically the first few years of the loan term. 3-2-1 Buy Down The 3-2-1 buy down is a mortgage option that provides initial interest rate reductions of three percentage points in the first year, two points in the second year, and one point in the third year. 2-1 Buy Down Similar to the 3-2-1 buy down, the 2-1 buy down program offers a two-percentage point reduction in the first year and a one-point reduction in the second year. Affordability Boost through Buy Downs: 1.  ...