Oklahoma is known for natural disasters, like tornados and even flooding and earthquakes. Unfortunately, for homeowners, those disasters have led to increased insurance costs, in recent years. 

There’s no denying home insurance rates in Oklahoma are high. In fact, the average home owner pays $6,210 per year, that’s 194% higher than the national average, which is $2,110 per year, according to NerdWallet.

In recent months, our team at Seda Real Estate Group has noticed that buyers are checking rates more closely when deciding whether or not to buy a home. 

Those rates, combined with current mortgage rates have many home buyers re-evaluating their budget. 

So why are rates so much higher in Oklahoma?

The easy answer is the weather. Oklahoma is best known for tornadoes, but other large weather related events, like flooding and wildfires have led to rate increases each year. Earthquakes are also a factor.  

The Oklahoma Insurance Department offers advice on their website to Oklahomans who are curious about how to get the best rates — suggesting things like shopping around to different insurance companies or increasing your deductible.

The insurance department does suggest that those buying or already owning a home in Oklahoma consider adding additional coverage to cover things like earthquakes and sewer/water backups, which are not typically covered by a standard plan. 

While it’s important to understand these factors when buying a home, they don’t have to be deal breakers for your overall goal. They may rule out a particular property or require some budget adjustments — but they don’t mean you can’t buy a home.

The Oklahoma Insurance Department also has an article with suggestions on how you may be able to lower your home insurance rates. You can find that here.

If you have questions or are interested in buying or selling a home we would love to help. Give us a call at 405-400-9973.

With recent news of the Federal Reserve dropping interest rates, many people expected to see mortgage rates decrease, as well. However, that hasn’t been the case.

“It can be hard to understand, especially considering that in some cases people saw those rates increase,” said Becky Seda, lead agent with Seda Real Estate Group, in Oklahoma City.

It’s really a complex issue, but we’ll try to help break it down.

At first glance, it makes sense to assume that when the Federal Reserve lowers interest rates, mortgage rates would follow suit. So why hasn’t that been the case?

“Mortgage rates follow the treasury,” Seda said. “Car loans and smaller loans were affected more so than mortgages.”

Things like the unemployment rates, current economic conditions (including inflation) and the ten year treasury yield are what typically have the greatest impact on mortgage rates.

Stephen Bellew, with GFS Home Loans, says mortgage rates are traded on the free market, which means investor sentiment plays a role in their pricing. Investors had expected the Fed would cut rates in September, and had made investment decisions reflecting that ahead of time.

“With stronger inflation and jobs data, we are seeing mortgage rates move up as investors are seeking other avenues for their money,” said Bellew.

Seda agrees, adding, “It’s generally less likely for mortgage rates to drop while the economy is doing as well as it is and while the job rates are as high as they are.”

In fact, Seda says if you are waiting on mortgage rates to drop you might reconsider. There are benefits to buying a home now.

“Even if rates drop it will still become more expensive to buy a house,” Seda said. “Whether the rates are high or the prices are increasing — which is likely to happen if rates drop —  either way you’re still paying more.”

Currently, in Oklahoma, the market is slowly shifting to a buyer’s market. Seda said if you are someone who wants to limit your out of pocket expenses, now may be a good time to start shopping.

“Some sellers are still thinking of 2021 when the market went crazy and homes were getting multiple offers. That’s just not where we are anymore,” Seda said.

“Because houses are sitting on the market longer, sellers are ready to accept an offer. And, as a buyer that means you can really negotiate things because houses are taking longer to sell.

It’s a trade off, of sorts. You get more negotiating power, with a higher mortgage rate. Whereas if you wait for rates to drop more shoppers will likely enter the market. If that happens, you may lose your negotiating power and end up paying a higher sales price.

“This is simple economics 101, supply and demand,” Bellew said, “If you want to buy when rates are low, competition increases and the price goes up. Higher rates do equal a better market for buyers to negotiate as it lessens the pool of qualified buyers.”

Ultimately, both Seda and Bellew believe mortgage rates will come down some, but maybe not as much as some buyers are hoping, at least in the foreseeable future.

“I do think they will go down a little bit, but I don’t think it’s going to make a substantial difference for people. The people it will impact are those who need to refinance their house,” she said.

For those navigating the Oklahoma real estate market, Seda Real Estate Group is here to provide guidance and support as you work toward your real estate goals. Whether you’re looking to buy, sell, or invest, we’re dedicated to helping you make the most informed decisions possible.

Want to talk real estate? Or are you looking to buy or sell a home? We’d love to chat. Give us a call at 405-400-9973.

At Seda Real Estate Group we are constantly following the market so we can better serve you. Knowing what’s happening in Oklahoma City and the surrounding areas is an important part of what we do.

Here’s the latest on the Oklahoma City market from Seda Real Estate Group’s Lead Agent Becky Seda.

In the first week of September, we saw almost 700 houses come on the market. We also saw almost 700 houses drop their prices, here in Oklahoma City.

What does that mean for buyers and sellers?

It means that homes are not selling as quickly right now as they were in the previous market.

For sellers, it means that adjustments are having to be made to get the home to sell. Buyers are being very picky, right now, and aren’t afraid to ask for adjustments to be made.

For buyers, it means sellers are willing to negotiate. Houses are taking longer to sell and sellers get a little anxious to move on. That adds up to more room to negotiate. So, if you see a house that has been on the market for a bit, it’s likely worth making an offer on it.

If you have questions or want to talk about the market we are always happy to talk real estate. And, if you are looking to buy or sell a home our team would love to help. Give us a call at 405-400-9973.