Oklahoma Funding Group Blog

RETAIL PRICES IN DECLINE, BUT HOW WILL THAT IMPACT MORTGAGE RATES?
November 19th, 2008 10:25 AM

The Consumer Price Index (CPI) report was released this morning, and it was quite surprising!  It showed that prices at the retail level dropped at a level not seen in over 60 years.  Economists were quick to explain that the unprecedented drop in energy prices led the price declines.  Nonetheless, there are whispers about the possibility of a deflationary economy.  This can be just as bad as inflation, but at opposite ends of the economic spectrum.  Deflation hit the U.S. economy especially hard during the Great Depression.  Deflation works like this:

If you want to buy a new dishwasher at a price of $225.00, but you are sure that the price will only be $190.00 next month you will postpone buying that dishwasher until next month.  Next month comes and that same dishwasher is now $195.00.  That's a good price, but you are sure that if you wait just one more month the price will be $175.00.  Again, you postpone your purchase until next month.  Now imagine that 100 million consumers across all retail sectors do that exact same thing.  At that point, the economy grinds to a complete halt.  We are seeing this, to some extent, in the automobile sector but for a different reason.

The recession, usually will push mortgage interest rates lower.  This is not currently happening.  The still present credit market crisis is having an adverse impact on mortgage interest rates across the board.  A standard conventional mortgage rate should be around 5.75%, but those rates are actually about 1/2 percentage point higher.  As the credit markets begin to "unfreeze" rates should begin to move lower.

The conventional wisdom continues to recommend locking your interest rate if your transaction is scheduled to close within 20 days, and float your interest rate if your transaction is scheduled to close outside that 20 day window.  We at the Oklahoma Funding Group feel that if you are happy with your interest rate, you should lock it as soon as possible.

If you have a mortgage question, please email us at dpharp@okfundinggroup.com


Posted by David Harpster on November 19th, 2008 10:25 AMPost a Comment (0)

MARKETS CONTINUE TO DEMONSTRATE VOLATILITY...
November 14th, 2008 12:52 PM

The Stock markets dipped and then rallied on Thursday.  When the dust settled, the Dow Jones Industrial Average picked up over 500 points!

Today is another story.  With Retail sales for last month hitting an all time low, the stock markets are down, but mortgage rates are dropping a little today too.  This just demonstrates that the economy is taking center stage for the next week or two, or until the next "crisis" hits.

The conventional wisdom now recommends that buyers lock their interest rate if their closing is set to occur in the next 20 days and let their interest rate float if their scheduled closing is outside that 20 day window. 

We at the Oklahoma Funding Group feel if you are happy with your interest rate you should always lock it in as soon as possible.


Posted by David Harpster on November 14th, 2008 12:52 PMPost a Comment (0)

NOW...BACK TO THE ISSUE AT HAND...
November 5th, 2008 10:50 PM

Now that the Presidential election is over and we know who will be our next President, The markets and economy can once again take front and center.

More economic data today indicates that the U.S. economy is ill.  The good news is that nobody is discussing the prospect of a true depression, but the conventional wisdom is betting that the economy has slipped into recession.  Since the credit markets are beginning to loosen up it looks as though mortgage interest rates are reacting to the slowing economy in a more traditional fashion.  This should translate into lower mortgage rates in the near future.

The conventional wisdom now recommends that buyers lock their interest rate if their closing is set to occur in the next 7 days and let their interest rate float if their scheduled closing is outside that 7 day window. 

We at the Oklahoma Funding Group feel if you are happy with your interest rate you should always lock it in as soon as possible.


Posted by David Harpster on November 5th, 2008 10:50 PMPost a Comment (0)

MORTGAGE RATES MOVE SLIGHTLY HIGHER TODAY...
October 23rd, 2008 12:36 PM

After 3 straight days of dropping mortgage interest rates, they are moving slightly higher today.  Even with higher than expected unemployment claims, rates have pushed higher.  Look for mortgage interest rates to respond to economic reports showing that we are facing a global economic recession.  next week will present several reports about the economy.

The conventional wisdom now recommends that buyers lock their interest rate if their closing is set to occur in the next 20 days and let their interest rate float if their scheduled closing is outside that 20 day window. 

We at the Oklahoma Funding Group feel if you are happy with your interest rate you should always lock it in as soon as possible.


Posted by David Harpster on October 23rd, 2008 12:36 PMPost a Comment (0)

AS FROZEN CREDIT MARKETS BEGIN TO THAW...MORTGAGE RATES DROP...
October 21st, 2008 11:27 AM

Finally!  It looks like there are some promising signs for the frozen credit markets.  Interbank lending rates are dropping, and mortgage interest rates are dropping as well.  Yesterday, conventional mortgage rates dropped by 1/4 of a percentage point, and FHA rates dropped by 1/2 of a percentage point! 

The conventional wisdom now recommends that buyers lock their interest rate if their closing is set to occur in the next 7 days and let their interest rate float if their scheduled closing is outside that 7 day window. 

We at the Oklahoma Funding Group feel if you are happy with your interest rate you should always lock it in as soon as possible.


Posted by David Harpster on October 21st, 2008 11:27 AMPost a Comment (0)

MORTGAGE RATES MAKE SURPRISING JUMP LAST WEEK AND CONTINUE TO MOVE UP THIS WEEK...
October 14th, 2008 2:59 PM

Since The Treasury Department has yet to have really set up a process for helping lender unload their bad mortgage debt, investors do not seem too interested in funneling anymore money into the mortgage bond markets.  In addition, a tremendous rebound in the stock markets yesterday drove mortgage bond prices down.  With last week's crisis in confidence in markets across the board and this week's issues, mortgage interest rates have risen, in some cases, a full percentage point!  That means that a mortgage you might have been able to get last week at 6% is now closer to 7% this week!  This trend should begin to reverse itself, but there is no telling when right now.

The conventional wisdom is now recommending that buyers allow their interest rate to float even if the closing is more than 90 days out.  We at the Oklahoma Funding Group feel if you are happy with your interest rate you should always lock it in as soon as possible.

If you have a mortgage question please email us at information@okfundinggroup.com . We will answer your question as quickly as possible.


Posted by David Harpster on October 14th, 2008 2:59 PMPost a Comment (0)

STOCKS FALL FURTHER...MORTGAGE RATES SPIKE...
October 10th, 2008 11:53 AM

This week the stock market fell to the lowest level since 2003. Normally mortgage markets improve during a stock market decline, since Fannie Mae, Freddie Mac, and Ginnie Mae mortgage backed securities (the vehicles through which most mortgages made today are sold) are considered a relatively safe haven. This week, however, the prices paid for these securities moved lower as well. One reason is that some investment funds have been forced to reduce their leverage and sell nearly every asset class in their portfolios. Another factor is investor concern that the supply of debt will increase significantly as the government funds its rescue actions. Mortgage rates ended the week moderately higher.

Investors viewed the $700 billion rescue plan passed last week as a necessary first step, but not an immediate solution to the credit crisis. Governments around the world took a variety of additional steps during the week to support the banking system. A historic coordinated interest rate cut from many central banks took place on Wednesday. The Federal Reserve lowered the Fed Funds rate by one half point to 1.50%, citing reduced inflationary pressures due to an economic slowdown and falling energy prices. The Fed Funds rate heavily influences short-term interest rates, but its impact on long-term mortgage rates varies based on inflation expectations. In this case, the Fed rate cut most likely helped move mortgage rates a little lower, but the factors described above had more influence.

The decline in home prices was a major cause of the credit crisis, and stabilization in the housing market will be important to resolve the problems. Little noticed this week, August Pending Home Sales jumped 7% from July, far above the consensus for a small decline. They were 9% higher than one year ago and were at the highest level since June 2007. Pending Home Sales are a leading indicator for the housing market, meaning that the next Existing and New Home Sales reports may show increases. Investors will be closely watching future housing market data to see if the trend continues.

The conventional wisdom continues to recommend that buyers lock their interest rate if their closing is set to occur in the next 21 days and let their interest rate float if their scheduled closing is outside that 21 day window.  We at the Oklahoma Funding Group feel if you are happy with your interest rate you should always lock it in as soon as possible.

If you have a mortgage question please email us at information@okfundinggroup.com . We will answer your question as quickly as possible.


Posted by David Harpster on October 10th, 2008 11:53 AMPost a Comment (0)

ALL MARKETS CONTINUE TO TREND LOWER...
October 8th, 2008 12:24 PM

The Federal Reserve Bank, in conjunction with many other central banks around the world, lowered its key interest rates by 1/2 percentage point.  The stock markets and mortgage bond markets are continuing to move lower today.  It's as if they are saying that they appreciate the rate cut, but things are still tough.  It looks like its just going to take some time for the markets to work through everything that is going on.  In the meantime, look for more volatility in mortgage interest rates.

The conventional wisdom now recommends that buyers lock their interest rate if their closing is set to occur in the next 21 days and let their interest rate float if their scheduled closing is outside that 21 day window.  We at the Oklahoma Funding Group feel if you are happy with your interest rate you should always lock it in as soon as possible.

If you have a mortgage question please email us at information@okfundinggroup.com . We will answer your question as quickly as possible.


Posted by David Harpster on October 8th, 2008 12:24 PMPost a Comment (0)

WORLDWIDE STOCK MARKETS TAKE A BEATING THE LAST TWO DAYS...
October 7th, 2008 1:31 PM

It looks as though the world is headed toward recession, and not just the United States.  This was really not completely unexpected, but it could complicate things here at home.  With all domestic and international markets for American goods and services slowing down, it will be a drag on our economy.

The Dow Jones Industrial Average has taken a beating over the last two days.  So far, the two day drop is around 500 points.  Other domestic markets are headed lower as well.

Mortgage interest rates have not moved a great deal in the last two days.  The credit markets are still frozen, and rates aren't moving a great deal.  That could change in the next few days as economic data could show that the U.S. economy is headed toward recession.  That could move rates somewhat lower.  In addition, The Federal Reserve Bank is looking at interest rate cuts, possibly in unison with other central banks around the world.

The conventional wisdom now recommends that buyers lock their interest rate if their closing is set to occur in the next 90 days and let their interest rate float if their scheduled closing is outside that 90 day window.  We at the Oklahoma Funding Group feel if you are happy with your interest rate you should always lock it in as soon as possible.


Posted by David Harpster on October 7th, 2008 1:31 PMPost a Comment (0)

HOUSE PASSES $700 BILLION FINANCIAL SYSTEM RESCUE BILL...
October 3rd, 2008 12:35 PM

The House Of Representatives has passed the bill designed to rescue out financial system.  The final vote was 263 to 171.  Now the measure will do to the President for his signature, which will surely happen very soon.

The question on everyone's mind is:  WHAT WILL THIS DO TO MORTGAGE INTEREST RATES?

My simple answer is:  I have no idea!  When the federal government injects close to $1 trillion into the economy, there is no telling what might happen to interest rates and the economy.  Inflation could be a major issue, but with the economy slipping into recession, the government and The Fed is more interested in getting the economy back on its feet.

The economy lost 159,000 jobs last week.  This is a truly dismal number, and suggests that our economy is in trouble.

The conventional wisdom continues to recommend that buyers lock their interest rate if their closing is set to occur in the next 60 days and let their interest rate float if their scheduled closing is outside that 60 day window.  We at the Oklahoma Funding Group feel if you are happy with your interest rate you should always lock it in as soon as possible.

If you have a mortgage question please email us at information@okfundinggroup.com . We will answer your question as quickly as possible.


Posted by David Harpster on October 3rd, 2008 12:35 PMPost a Comment (0)

NOW...IT'S THE HOUSE OF REPRESENTATIVES' TURN TO CONSIDER RESCUE BILL...
October 2nd, 2008 2:11 PM

The Senate passed the $700 billion financial system rescue bill on Wednesday evening.  This measure now moves to The House of Representatives for consideration, and it is no guarantee that it will pass.  Even with the "extras" that were added to the bill to make it easier to pass, it is possible that the Republicans might not vote for it.  The House will begin consideration of the bill on Friday.

Meanwhile, there is more evidence of economic trouble.  The weekly report on initial unemployment claims showed that those claims are sneaking up to the 500,000 mark.  1/2 million first-time unemployed workers is a sizeable amount.  This just underscores the fact that the national economy is in trouble, although the Oklahoma economy seems to moving along at a nice clip.

The conventional wisdom continues to recommend that buyers lock their interest rate if their closing is set to occur in the next 60 days and let their interest rate float if their scheduled closing is outside that 60 day window.  We at the Oklahoma Funding Group feel if you are happy with your interest rate you should always lock it in as soon as possible.

If you have a mortgage question please email us at information@okfundinggroup.com . We will answer your question as quickly as possible.


Posted by David Harpster on October 2nd, 2008 2:11 PMPost a Comment (0)

CONGRESS DEBATES WHILE "ROME BURNS"...
October 1st, 2008 2:43 PM

While our economy slips into a recession, Congress begins to debate on, and consider for passage, another financial system rescue plan.  This rescue plan may help ease the credit market's woes, but will it really do anything for an economy that has been taking a beating from high oil prices, the sub-prime mortgage meltdown, the real estate correction, and now the credit market seizure?  In the short term, it looks like there is NO help in sight for the economy.  When it is all said and done, data should show that we are in a recession currently, and that the 4th quarter of this year will show that we will be in a recession.  In addition, it is possible that we could still be in a recession in the 1st quarter of 2009.

Today's economic data showed that our manufacturing sector is in decline, due to economic issues.  the last time that the data showed this trend was right after 9/11.

This Friday's employment report for September will be of the upmost importance.  Economists are speculating on how many jobs were lost last month, and not whether or not we lost jobs last month.  The current estimates are that there were 90,000 to 105,000 jobs lost last month.

The conventional wisdom continues to recommend that buyers lock their interest rate if their closing is set to occur in the next 60 days and let their interest rate float if their scheduled closing is outside that 60 day window.  We at the Oklahoma Funding Group feel if you are happy with your interest rate you should always lock it in as soon as possible.

If you have a mortgage question please email us at information@okfundinggroup.com . We will answer your question as quickly as possible.


Posted by David Harpster on October 1st, 2008 2:43 PMPost a Comment (0)

LACK OF DIRECTION FROM WASHINGTON HURTS MARKETS YESTERDAY...
September 30th, 2008 12:54 PM

After the leadership of the U.S House and Senate agreed on a package that would salvage the financial system of the western world, the House voted against it.  The result was a market meltdown.  This was a classic example of a lack of effective leadership that has been absent from Washington in at least the last 8 years.  Whether you agree with the rescue efforts or not, that was not the way to conduct the business of the people.  The issues should have been settled long before the vote, and petty politics has no place in a situation such as this.  The $700 billion program cost less that the market losses of yesterday afternoon alone.  It was estimated that the markets lost $1 trillion yesterday.  That includes losses to our IRA's and 401k plans.

Today the markets have rebounded, and have picked up roughly half of what was lost yesterday.  This is probably temporary as economic conditions deteriorate in the coming days, weeks, and months.

Mortgage rates are ticking up this afternoon as well.

The conventional wisdom continues to recommend that buyers lock their interest rate if their closing is set to occur in the next 60 days and let their interest rate float if their scheduled closing is outside that 60 day window.  We at the Oklahoma Funding Group feel if you are happy with your interest rate you should always lock it in as soon as possible.

If you have a mortgage question please email us at information@okfundinggroup.com . We will answer your question as quickly as possible.


Posted by David Harpster on September 30th, 2008 12:54 PMPost a Comment (0)

FINANCIAL BAIL-OUT PLAN MOVES FORWARD...
September 25th, 2008 12:48 PM

It looks as though the $700 billion financial system bail-out will be agreed upon, in principle, this afternoon.  The actual way that it will be set up has to have really come out, but it could include several other components like caps on executive pay for those participating institutions.  In addition, it has been said on CNBC that Speaker of the House Pelosi will be carrying a new economic stimulus package proposal for the President to look at.

The stock markets are rallying on the impending announcement this afternoon that the plan has been agreed upon.  Some analysts are expecting the possibility of a 1000 point rally in the Dow Jones Industrial Average.  Mortgage rates have worsened slightly from this morning's levels due to investment dollars moving into the equity markets.

The conventional wisdom continues to recommend that buyers lock their interest rate if their closing is set to occur in the next 60 days and let their interest rate float if their scheduled closing is outside that 60 day window.  We at the Oklahoma Funding Group feel if you are happy with your interest rate you should always lock it in as soon as possible.

If you have a mortgage question please email us at information@okfundinggroup.com . We will answer your question as quickly as possible.


Posted by David Harpster on September 25th, 2008 12:48 PMPost a Comment (0)

MORTGAGE RATES CONTINUE TO INCH UP...
September 22nd, 2008 2:13 PM

Mortgage rates are pressing higher on increased fears that inflation will become an issue when the government begins buying $700 billion of mortgage securities.  In addition, oil, for similar reasons pushed higher by about $20 per barrel to $120.00.

Markets across the board are concerned about what is going to happen over the next few days and weeks with the Treasury Department's plan to bail out the nation's financial system.  The Democratically controlled Congress is seeking some concessions in the plan that will, among other things, cap the pay for executives whose firms participate in the proposed plan.  The Democrats also want to see some help for home owners facing foreclosure.

The conventional wisdom continues to recommend that buyers lock their interest rate if their closing is set to occur in the next 60 days and let their interest rate float if their scheduled closing is outside that 60 day window.  We at the Oklahoma Funding Group feel if you are happy with your interest rate you should always lock it in as soon as possible.

If you have a mortgage question please email us at information@okfundinggroup.com . We will answer your question as quickly as possible.


Posted by David Harpster on September 22nd, 2008 2:13 PMPost a Comment (0)

FEDERAL GOVERNMENT BEGINS PROCESS TO BAIL OUT BANKING SYSTEM...
September 19th, 2008 1:31 PM

The Federal Government, spear headed by Treasury Secretary Paulson, has begun a plan to bail out the nation's banking system.  The plan, according to Paulson, will free up credit, and allow the economy to turn around.  This plan will consist of the Federal Government buying "toxic" mortgage paper for pennies on the dollar, but then the risk of those mortgages will also be transferred to the Federal Government.  Banks will then be able to resume their normal lending practices without the worry of increased mortgage defaults.

This looks to be one of the largest and most expensive programs since FDR's New Deal Programs in the 1930's.  It should be similar to the Resolution Trust Corporation that bailed out the failed Savings and Loans last decade, but much more expensive.

In response, mortgage rates today are highly volatile, and should continue to be that way into next week.

The conventional wisdom continues to recommend that buyers lock their interest rate if their closing is set to occur in the next 60 days and let their interest rate float if their scheduled closing is outside that 60 day window.  We at the Oklahoma Funding Group feel if you are happy with your interest rate you should always lock it in as soon as possible.

If you have a mortgage question please email us at information@okfundinggroup.com . We will answer your question as quickly as possible.


Posted by David Harpster on September 19th, 2008 1:31 PMPost a Comment (0)

LACK OF CONFIDENCE HAMMERS MARKETS AND MORTGAGE RATES...
September 18th, 2008 11:33 AM

With the demise of Lehman Brothers, the last minute bailout of AIG, arguably the largest international insurance company in the world, Merrill Lynch being sold to Bank of America, and other major financial firms scrambling for protection the markets in general have been taking a beating.  What's worse is that there is now a lack of confidence in the markets as a tool for generating income and profits.  Whether that opinion is right or not is not important.  What is important is that when enough investors lose confidence in the markets, then those markets tumble, and it all becomes a cyclical nightmare.  Although many middle class U.S. citizens are thinking about stashing their money in mason jars and burying them in the backyard, investors today are flocking to commodities.  The per once price of gold has risen today by as much as $27.00!  Markets hate surprises. The economy and the federal government has been throwing surprise after surprise at the markets for the last 3 weeks.

The Federal Reserve Bank pumped $55 billion into foreign markets overnight to help with liquidity abroad and at home.  These actions might help with the seized credit markets her in the United States, but it is looking more like we will be experiencing a recession by the end of this year and into 2009.  These are crazy days for the markets. 

The conventional wisdom continues to recommend that buyers lock their interest rate if their closing is set to occur in the next 60 days and let their interest rate float if their scheduled closing is outside that 60 day window.  We at the Oklahoma Funding Group feel if you are happy with your interest rate you should always lock it in as soon as possible.

If you have a mortgage question please email us at information@okfundinggroup.com . We will answer your question as quickly as possible.


Posted by David Harpster on September 18th, 2008 11:33 AMPost a Comment (0)

THE FED LEAVES INTEREST RATES ALONE - MORTGAGE RATES RISE...
September 16th, 2008 1:57 PM

As I expected, The Federal Reserve decided to keep their key interest rates at their current levels.  The interest rate markets were hoping, unwisely, that The Fed would cut their Fed Funds rate by a quarter of a percentage point.  In response to the lack of action by The Fed, mortgage interest rates have jumped by 1/8 to 1/4 of a point this afternoon.

In addition, the jitters that Wall Street is experiencing from all the bad news from yesterday was still weighing on the stock markets this morning, but now those markets are solidly in positive territory this afternoon.

The conventional wisdom continues to recommend that buyers lock their interest rate if their closing is set to occur in the next 60 days and let their interest rate float if their scheduled closing is outside that 60 day window.  We at the Oklahoma Funding Group feel if you are happy with your interest rate you should always lock it in as soon as possible.

If you have a mortgage question please email us at information@okfundinggroup.com . We will answer your question as quickly as possible.


Posted by David Harpster on September 16th, 2008 1:57 PMPost a Comment (0)

MARKETS ROCKED BY LEHMAN BROTHERS BANKRUPTCY...
September 15th, 2008 2:01 PM

With Lehman Brothers declaring Chapter 11 reorganization under the Federal Bankruptcy Statutes, the Dow Jones Industrial Average is down over 300 points, and mortgage interest rates are sliding further due to investors exiting the stock markets and investing in the bond markets.  After all the dust has settled, investment dollars will begin to take advantage of some low prices in the stock markets, but that may be a couple of days away.

In addition to the revelations from Lehman Brothers, Merrill Lynch is being purchased by Bank of America.  It could be that in 10 years Wal-Mart, Microsoft and Bank of America will rule the world!

The multinational insurance/investment firm AIG might be the next company on the chopping block, and follow Lehman Brothers to bankruptcy court, if the rumors are true. 

The conventional wisdom now recommends that buyers lock their interest rate if their closing is set to occur in the next 60 days and let their interest rate float if their scheduled closing is outside that 60 day window.  We at the Oklahoma Funding Group feel if you are happy with your interest rate you should always lock it in as soon as possible.

If you have a mortgage question please email us at information@okfundinggroup.com . We will answer your question as quickly as possible.


Posted by David Harpster on September 15th, 2008 2:01 PMPost a Comment (0)

MORTGAGE RATES CONTINUE TO CLIMB TODAY...
September 12th, 2008 2:52 PM

Mortgage interest rates continue to move higher this afternoon.  Stock markets have recovered from this morning's losses, although still in negative territory.

Mortgage rates have moved up approximately a 1/4 of a discount point today.  Rates with no points have inched up about an 1/8 of a percentage point.

The conventional wisdom continues to recommend that buyers lock their interest rate if their closing is set to occur in the next 20 days and let their interest rate float if their scheduled closing is outside that 20 day window.  We at the Oklahoma Funding Group feel if you are happy with your interest rate you should always lock it in as soon as possible.

If you have a mortgage question please email us at information@okfundinggroup.com . We will answer your question as quickly as possible.


Posted by David Harpster on September 12th, 2008 2:52 PMPost a Comment (0)

MORTGAGE RATES INCHING UP TODAY...
September 12th, 2008 10:38 AM

Although mortgage interest rates are fairly flat this morning, they are beginning to possibly inch up a little this afternoon.  It is interesting that mortgage rates are moving slightly higher after this morning's reports that show inflation is under control and that retail sales have dropped last month.  If the economy is sliding even closer to recession, and inflation is under control, that means that The Federal Reserve Bank could reduce their interest rates at their next meeting.  The conventional wisdom is that there is a 50% chance that The Fed could lower their key interest rates at their next meeting.

The conventional wisdom continues to recommend that buyers lock their interest rate if their closing is set to occur in the next 20 days and let their interest rate float if their scheduled closing is outside that 20 day window.  We at the Oklahoma Funding Group feel if you are happy with your interest rate you should always lock it in as soon as possible.

If you have a mortgage question please email us at information@okfundinggroup.com . We will answer your question as quickly as possible.


Posted by David Harpster on September 12th, 2008 10:38 AMPost a Comment (0)

MORTGAGE RATES STILL VOLATILE...
September 10th, 2008 4:12 PM

Lenders across the board sent out 3 rate changes today.  This demonstrates further volatility in mortgage rates.  There was no economic data released today, but interest rates really didn't need the added stimulus. 

Thursday's reports will include the weekly report on initial unemployment claims.  This could be important to markets hungry for relevant data to provide direction.

The conventional wisdom continues to recommend that buyers lock their interest rate if their closing is set to occur in the next 20 days and let their interest rate float if their scheduled closing is outside that 20 day window.  We at the Oklahoma Funding Group feel if you are happy with your interest rate you should always lock it in as soon as possible.

If you have a mortgage question please email us at information@okfundinggroup.com . We will answer your question as quickly as possible.


Posted by David Harpster on September 10th, 2008 4:12 PMPost a Comment (0)

RATE VOLATILITY STILL AN ISSUE...
September 9th, 2008 3:08 PM

I thought that with the Federal Government assuming control of Fannie Mae and Freddie Mac, there might be less day-to-day volatility.  Thus far, I was mistaken.  Although mortgage interest rates have fallen from as high as 6.5% to 6%, those rates are still jumping quite a bit.  They will eventually settle down, but for now it is something that we will need to plan for.

The conventional wisdom continues to recommend that buyers lock their interest rate if their closing is set to occur in the next 20 days and let their interest rate float if their scheduled closing is outside that 20 day window.  We at the Oklahoma Funding Group feel if you are happy with your interest rate you should always lock it in as soon as possible.

If you have a mortgage question please email us at information@okfundinggroup.com . We will answer your question as quickly as possible.


Posted by David Harpster on September 9th, 2008 3:08 PMPost a Comment (0)

MORTGAGE RATES DROP IN RESPONSE TO GOVERNMENT ACTIONS...
September 8th, 2008 12:06 PM

The Federal Government has assumed "conservatorship" of Fannie Mae and Freddie Mac, the two largest purchasers/guarantors of mortgages in the United States.  The two hold close to 1/2 of the mortgages in the United States which equates to approximately $5 trillion.  With the actions of the Federal Government, mortgage interest rates dropped this morning by 1/4 of a percentage point.  It is possible that rates could be in the 5.5% range by the end of November, or maybe sooner.  This week's economic data could slow or accelerate the process.  Inflation data will be posted throughout this week.

The conventional wisdom now recommends that buyers lock their interest rate if their closing is set to occur in the next 20 days and let their interest rate float if their scheduled closing is outside that 20 day window.  We at the Oklahoma Funding Group feel if you are happy with your interest rate you should always lock it in as soon as possible.

If you have a mortgage question please email us at information@okfundinggroup.com . We will answer your question as quickly as possible.


Posted by David Harpster on September 8th, 2008 12:06 PMPost a Comment (0)

MORTGAGE RATES DROP, BUT NOW ARE RISING...
September 5th, 2008 12:00 PM

This morning's dismal jobs report for August sent mortgage rates lower, and the stock markets plummeted.  As of 12:00 CST, the stock markets are rebounding significantly, but sending mortgage rates higher.  Early this morning, mortgage rates were at lows not seen in weeks, but it looks as though we will be off of those lows this afternoon.

The conventional wisdom continues to recommend that buyers lock their interest rate if their closing is set to occur in the next 7 days and let their interest rate float if their scheduled closing is outside that 7 day window.  We at the Oklahoma Funding Group feel if you are happy with your interest rate you should always lock it in as soon as possible.

If you have a mortgage question please email us at information@okfundinggroup.com . We will answer your question as quickly as possible.


Posted by David Harpster on September 5th, 2008 12:00 PMPost a Comment (0)

MORTGAGE RATES CONTINUE TO SLIDE IN RESPONSE TO ECONOMIC DATA...
September 4th, 2008 12:09 PM

This morning's economic data has given mortgage interest rates some added relief.  This morning's revised report on last quarter's productivity showed that productivity rose by an astounding 4.3%!  This increased productivity, in turn eases the wage inflation portion of the productivity report.  That means that this type of inflation is currently under control.

On the employment front, initial unemployment claims and continuing unemployment claims have continued to rise.  Friday's monthly jobs report will be closely watched.  If the economy lost substantially more than the predicted amount of 75,000, then look for mortgage interest rates to move lower in the morning.

The conventional wisdom now recommends that buyers lock their interest rate if their closing is set to occur in the next 7 days and let their interest rate float if their scheduled closing is outside that 7 day window.  We at the Oklahoma Funding Group feel if you are happy with your interest rate you should always lock it in as soon as possible.

If you have a mortgage question please email us at information@okfundinggroup.com . We will answer your question as quickly as possible.


Posted by David Harpster on September 4th, 2008 12:09 PMPost a Comment (0)

DAILY VOLATILITY CONTINUES, BUT RATES ARE MOVING LOWER...
September 3rd, 2008 10:15 PM

On a daily basis, mortgage interest rates are still volatile, but over the last 2 days, those rates have moved 1/4 of a percentage point lower.  It would seem that The Federal Reserve Bank is not too concerned with the prospect of inflation right now.  This has given the bond markets some sense of security right now, but that might be false security.  Inflation can become a major concern with just one economic report.

The conventional wisdom continues to recommend that buyers lock their interest rate if their closing is set to occur in the next 20 days and let their interest rate float if their scheduled closing is outside that 20 day window.  We at the Oklahoma Funding Group feel if you are happy with your interest rate you should always lock it in as soon as possible.

If you have a mortgage question please email us at information@okfundinggroup.com . We will answer your question as quickly as possible.


Posted by David Harpster on September 3rd, 2008 10:15 PMPost a Comment (0)

MORTGAGE RATES INCH UP IN ADVANCE OF LONG WEEKEND...
August 29th, 2008 12:24 PM

This morning's economic data was a mixed bag for mortgage interest rates.  Personal income and expenditures for July showed that the average spending for Americans rose by 0.2%, but their income dropped by 0.7%, suggesting that future consumer spending could decline.  In addition, the portion of the report that tracks inflation showed that it was at a 17 year high.  The inflation section is what has mortgage interest rates concerned.

Also, The University of Michigan's consumer survey showed that consumer attitudes rose slightly.  This contradicts the data from earlier this morning.

The conventional wisdom now recommends that buyers lock their interest rate if their closing is set to occur in the next 20 days and let their interest rate float if their scheduled closing is outside that 20 day window.  We at the Oklahoma Funding Group feel if you are happy with your interest rate you should always lock it in as soon as possible.

If you have a mortgage question please email us at information@okfundinggroup.com . We will answer your question as quickly as possible.


Posted by David Harpster on August 29th, 2008 12:24 PMPost a Comment (0)

ECONOMIC DATA SURPRISES...
August 28th, 2008 1:08 PM

This morning's revised report on the Gross Domestic Product (GDP), the broadest measure of economic activity and growth for the U.S. economy, showed surprising strength.  The report showed that the U.S. economy grew at a brisk pace of 3.3%.  This normally would have caused a sizable increase in mortgage interest rates, but was pretty much shrugged off.  Interest rates, however have not slid lower today either.

Tomorrow, data will be released that will give us some indication of the level of inflation.

The conventional wisdom continues to recommend that buyers lock their interest rate if their closing is set to occur in the next 7 days and let their interest rate float if their scheduled closing is outside that 7 day window.  We at the Oklahoma Funding Group feel if you are happy with your interest rate you should always lock it in as soon as possible.

If you have a mortgage question please email us at information@okfundinggroup.com . We will answer your question as quickly as possible.


Posted by David Harpster on August 28th, 2008 1:08 PMPost a Comment (0)

MORTGAGE INTEREST RATES INCH LOWER TODAY...
August 27th, 2008 3:19 PM

Even though this morning's economic report on durable goods orders was much better than expected, it did not impact mortgage rates like some thought it would.  There is still plenty of bad news in the economy that is keeping interest rates in the manageable range.  This afternoon, mortgage rates did not actually move down by much, but the points paid for buying down to a lower interest rates has lessened.

The conventional wisdom continues to recommend that buyers lock their interest rate if their closing is set to occur in the next 7 days and let their interest rate float if their scheduled closing is outside that 7 day window.  We at the Oklahoma Funding Group feel if you are happy with your interest rate you should always lock it in as soon as possible.

If you have a mortgage question please email us at information@okfundinggroup.com . We will answer your question as quickly as possible.


Posted by David Harpster on August 27th, 2008 3:19 PMPost a Comment (0)

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