If you’re looking to purchase a home in Oklahoma City, now is a great time. Not only are mortgage rates low, the number of available homes is at a fantastic level. Plus, the area boasts one of the lowest cost of living figures and is one of the safest metropolitan regions in the nation. Simply put, if you’re in the market, there’s definitely a property and an interest rate available to match your budget.
There are also several different suburbs in the area to choose from. Examples include large populations, such as Edmond, Norman, and Moore. Other smaller options include Piedmont, Blanchard, Mustang, and Minco. And these are just a brief sampling of different towns to call home in the region—all of which you can find a low mortgage rate to suit your needs.
Here’s what you need to know about Oklahoma City mortgage rates and what you can expect for the rest of the year.
Oklahoma City Mortgage Rates
As of February 2016, the current rate on a 30-year fixed mortgage in Oklahoma is 3.83 percent. For those looking for a shorter term, the rate on a 15-year fixed mortgage is around 2.79 percent. And the current interest on a 5/1 ARM loan is 3.21 percent. These figures continue to change daily and the overall levels only seem to be dropping on a national level.
Comparatively speaking, these interest rate levels are great but aren’t the lowest they’ve ever been. 2012 saw bottom level figures that caused a small surge in home ownership, but the number today really isn’t much higher. In a longer range view, rates now are considerably lower than they were in the 1990s and 2000s when these interest rate numbers topped over 18.2 percent.
Trends for Mortgage Rates and Buying a Home in Oklahoma City for 2016
Unfortunately, the start of the year has been a little rocky for the financial markets. While this is terrible news for some investors, it is great for those looking to buy a new home. As more consumers start to wonder if their retirement account and other investments will hold value, they are buying less properties. This drives down the average interest rates of mortgages and makes it easier for those who would be purchasing property anyway due to job transfers, needing a larger number of bedrooms, etc.
So, what’s next? This is where most national economy experts and those familiar with mortgage rates really disagree. Most are citing a rise to over 4.5 percent across the board sometime this year due to a low inflation cost and a drop in the unemployment rate across the country—which directly contradicts the regional employment losses due to downturn in the energy sector. Others are saying rates will continue to fall, likely to below 2012 levels.
Thus, when considering the fate of mortgage interest rates for the year, it is also important to take in consideration the longer range financial picture in our nation’s economy. If the market suddenly rebounds, there’s always a chance that standard mortgage rates will rise. This means that it is really important to take advantage of the low levels while you can before they change later on in 2016.
But there’s one thing that just about everyone in the industry agrees on. This is that rates won’t see levels comparable to previous decades for many, many years. The current state of the economy and what buyers now consider normal will make it hard for those levels to regain their foothold, with some experts believing that mortgage rates will never hit those same levels again.
Why Oil Affects Oklahoma City Real Estate Sales and Mortgage Rates
There’s no doubt that the cost of oil affects the Oklahoma City real estate market dramatically. With many energy companies in the area facing dramatic layoffs because of low barrel prices, many workers are being conservative with their money and not making big moves, such as buying a new home. This means that mortgage rates for this region are expected to remain low throughout the rest of the year. This factor is great for those looking to leave other parts of the country to enjoy a lower cost of living in Oklahoma. Again, this prediction is based on a multitude of factors and could change at any given moment due to the fluctuations of the United States economy as a whole.
Other Real Estate Statistics for Oklahoma City
Now is really a good time to buy a home in Oklahoma City and its surrounding suburbs. The median price of a home in this community is $131,000, with prices in some of the neighboring areas a bit higher due to new construction and/or exclusivity. The cost of purchasing a residence in the community is approximately 28 percent lower than in the rest of the country. There’s also a fair number of affordable housing units on the market, with a large increase expected in the late spring timeframe.
Ready to get started finding your dream home in Oklahoma City? Movoto offers up-to-date listings, school information, crime statistics, and real estate trend information. There’s also further data about schools, investment properties, home sizes, and so much more. You can even get in touch with a licensed local realtor who will help setup a time for you to look at your favorite listings and ensure the whole process goes smoothly. Sign up now to get going.
2 Point Highlight
With many energy companies in the area facing dramatic layoffs, many workers are being conservative with their money and not making big moves, such as buying a new home.
As of February 2016, the current rate on a 30-year fixed mortgage in Oklahoma is 3.83 percent.
