Wednesday, September 12, 2007

Wednesday, September 12, 2007

Economic Data Update of US Economy
On August 7th, Ben Bernanke and the FOMC (Federal Open Market Committee) decided to hold steady on the Fed funds rate at 5.25%. They will hold their next meeting next Tuesday, September 18th. The Central Banks around the world have injected vast sums of money into the reserve to contain the crisis of short-term illiquidty. These infusions of cash are the Central Bank's method to add money into the economy so the FOMC does not have to lower the Fed funds rate to 5%. Consumer confidence slipped in August and the world money markets are sitting back waiting to see if the Fed will "bail-out" the Wall Street risk takers on September 18th; many wonder if it will be followed by another .25% cut during the FOMC's next meeting on October 30-31st. Will the rate drop to 4.25% by Spring of 2008? If we had the answer to this, we would be selling our crystal ball and moving to an island in Florida.
30 Year fixed mortgage rates still hover between 6.375% and 6.5% as of this writing. If the inflation lion is still in his cage and remains tame, maybe we'll see more reductions to mortgage rates. Looking back, we were at 6.25% until late May. We can only hope and pray that they fall to that level in the coming weeks (we would all like to enjoy the 6% and below rates we had become used to the past few years). If the fed will begin and continue cutting rates, our US economy may be able to avoid a recession in 2008.
In Tulsa, we should have enough barriers in place to avoid a recession and our economic momentum should carry us into next year like a smooth wave. We Tulsans should continue our optimistic economic outlook and avoid the economic downturns and pitfalls being experienced in other parts of our country because we have been more fiscally conservative in our buying and borrowing practices.
Have no fear when buying a home. Just make sure that you have a good realtor and solid, experienced lenders assisting you. There must be trust established between all of the parties to a transaction. Ask your realtor or lender about any potential businesses you will be dealing with during the home buying process.
If you have questions on Tulsa, Oklahoma homes for sale or commercial real estate, please contact The Baskin Team of McGraw Realtors at (918) 258-2600.

Need a mortgage loan in Tulsa, Oklahoma? Home loans, first time buyer loans, bond money, FHA, VA, Conventional, Jumbo home loans, credit report questions and other mortgage needs in the Tulsa, OK area, you can call our experienced group of professionals at ONB Bank & Trust Residential Mortgage Division, formerly known as Pinnacle Mortgage Corp
@ (918) 481-6833.
Jeff Sargent
President - Residential Mortgage Division
ONB Bank & Trust
8908 S Yale, Suite 250
Tulsa, OK 74137