Homes today in Bixby, Oklahoma 74008, Jenks, Oklahoma 74037, Kiefer, Oklahoma, 74041, Mounds, Oklahoma 74047, and Glenpool, Oklahoma 74033 are appreciating. Of course, it is normal to think a home will cost more as prices are appreciating here in the Tulsa Metro area. The way the housing market is positioned today, however, low mortgage rates are actually making homes more affordable, even as prices rise here in Oklahoma. Here’s why.
While home prices have risen for 97 consecutive months, July’s record-low mortgage rates have made purchasing the average-priced home the most affordable it’s been since 2016.
Mortgage Monitor Report from Black Night
How is that possible?
As of mid-July, it required 19.8% of the median monthly income to make the mortgage payment on the average-priced home purchase, assuming a 20% down payment and a 30-year mortgage. That was more than 5% below the average of 25% from 1995-2003.
This means it currently requires a $1,071 monthly payment to purchase the average-priced home, which is down 6% from the same time last year, despite the average home increasing in value by more than $12,000 during that same time period.
In fact, buying power is now up to 10% year-over-year, meaning the average home buyer can afford nearly $32,000 more home than they could at the same time last year, while keeping their monthly payment the same.”
Mortgage Monitor Report from Black Knight
This is great news for our Tulsa County and Creek County home buyers who were unable to purchase last year, or earlier in the spring due to the slowdown from the pandemic. By waiting a little longer, Oklahomans can now afford 10% more home than they could have a year ago while keeping their monthly mortgage payment unchanged.
With mortgage rates hitting all-time lows eight times this year, it’s now less expensive to borrow money, making homes significantly more affordable over the lifetime of your loan. Mark Fleming, Chief Economist at First American, shares what low mortgage rates mean for affordability.
In July, house-buying power got a big boost as the 30-year, fixed mortgage rate made history by moving below three percent. That drop in the mortgage rate from 3.23 percent in May to 2.98 percent in July increased house-buying power by nearly $15,000.
Mark Fleming, Chief Economist at First American
The map below shows the last time homes were this affordable by state:
In six states –Arkansas, Iowa, Kentucky, Louisiana, Maryland, and West Virginia-homes have not been this affordable in more than 25 years.
Bottom Line
If you’re thinking of making a move in Bixby, Oklahoma 74008, Jenks, Oklahoma 74037, Kiefer, Oklahoma, 74041, Mounds, Oklahoma 74047, and Glenpool, Oklahoma 74033, now is a great time to take advantage of the affordability that comes with such low mortgage rates. Whether you’re thinking of purchasing your first home or moving into a new one and securing a significantly lower mortgage rate than you may have on your current house, reach out to us today at Homes by Sabrina so we can determine your next steps in the process. I am Sabrina Shaw with eXp Realty and remember, everyone should love where they live.