From my Oklahoma City postcard collection…
This is where it began for me. If you know me at all, you know that flying was my first life.
In 1957 the National Air Show was held in Oklahoma City at Will Rogers Field. I clearly remember taking relatives to the airport before the show. A fighter was practicing for the show, broke the sound barrier and blew all the windows out of the terminal. That was impressive for a 9 year old kid! We went back the next week to the show and I was hooked. Little did I know my dreams would be fulfilled a dozen years later!
In the 1960’s this terminal was replaced with version 1.0 of what we have today and was named Will Rogers World Airport. Oklahoma City has the distinction of having the only airport using ‘world’ in it’s name. It’s also named after someone killed in a plane crash and that its’ name makes no reference to the actual location.
Home affordability took a slight hit this week after the Federal Reserve’s release of its August 10 meeting minutes.
The “Fed Minutes” is a lengthy, detailed recap of a Federal Open Market Committee meeting, not unlike the minutes published after a corporate conference, or condo association gathering. The Federal Reserve publishes its meeting minutes 3 weeks after a FOMC get-together.
The minutes are lengthy, too.
At 6,181 words, August’s Fed Minutes is thick with data about the economy, its current threats, and its deeper strengths. The minutes also recount the conversations that, ultimately, shape our nation’s monetary policy.
It’s for this reason that mortgage rates are rising. Wall Street didn’t see much from the Fed that warranted otherwise.
Among the Fed’s observations from its minutes:
- On the economy : The recession was deeper than previously believed
- On jobs : Private employment is expanding slowly
- On housing : The market was “quite soft” in June
Now, none of this was considered “news”, per se. If anything, investors were expecting for harsher words from the Fed; a bleaker outlook for the economy. And, because they didn’t get it, monies moved to stocks and mortgage bonds lost.
That caused mortgage rates to rise.
The Fed meets 8 times annually. Its next meeting is scheduled for September 21, 2010. Until then, mortgage rates should remain low and home affordability should remain high. There will be ups-and-downs from day-to-day, but overall, the market is favorable.
According to the Standard & Poors Case-Shiller Index, home values rose 5 percent in June versus the month prior, and 4 percent from a year earlier. It’s the 16th consecutive month in which Case-Shiller reported an increase in home values and the third straight month of outstanding results.
That said, homeowners and home buyers in Oklahoma City would do well to temper Case-Shiller enthusiasm. The June figures are issued on 60-day delay and, over the last 60 days, housing data has been lackluster at best.
Stories like these highlight a key weakness of the Case-Shiller Index — it’s out of date as soon as it’s published. Because of this, the Case-Shiller Index relevance to everyday Americans is muted. People don’t buy homes in the “60 days ago” real estate market, after all.
June is ancient real estate history to buyers and sellers in Rose Creek.
However, the Case-Shiller Index does have its place. As the most widely-followed, private-sector housing tracker, the index is used to help make policy decisions and to shape Wall Street’s expectations of the economy. This means that a strong Case-Shiller reading can cause mortgage rates to rise, and a weak Case-Shiller reading can cause rates to fall.
Tuesday, mortgage rates fell.
From my Oklahoma City postcard collection…
This photo is definitely before my time! This would be Main Street looking east and appears to be taken in the early 1930’s. On the left is Street’s Department store which remained in Oklahoma City until the 1980’s or 1990’s. Kerr’s Department Store is on the right and I do remember going there as a small child.
The tall buildings in the background are the Ramsey Tower which became City Place and the First National Bank Building.
