The RDS Business Intelligence team recently updated its Econometrix Tableau real estate workbooks. CLICK HERE to check out all of RDS’s Tableau Workbooks.

MORTGAGE RATES

The average 30-year fixed mortgage rate as of September 15 is 6.02%.The current rate has risen 87% since January, and is at a 14-year high dating back to November, 2008 . Below we put mortgage rates in context, looking back 50 years by decade:

  • 2020s: 3.50%
  • 2010s: 4.09%
  • 2000s: 6.29%
  • 1990s: 8.12%
  • 1980s: 12.70%
  • 1970s: 8.90%

MORTGAGE APPLICATIONS

The Mortgage Bankers Association (MBA) reports weekly on two types of mortgage applications:

MBA Purchase Index: The Purchase Index is a leading indicator of home sales by 4-6 weeks, meaning that it is a predictor of housing activity. Housing economists and home builders use the index to forecast new and existing home sales. The current index stands at 198.1, down 34% versus the 2022 high of 312.2 seen in January.

MBA Refinance Index: The Refinance Index is a tool to predict mortgage activity. Homebuilders pay attention to the Refinance Index because it is a leading indicator of home sales. On the other hand, mortgage investors also take notice of the index as it is a leading indicator of mortgage pre-payment activity. The current refinance index is at 533, down 78% since the beginning of 2022. For perspective, the refinance index stood at 6,419 in March, 2020.

HOME SALES

NOTE: Home sale data lags by several months, so our current Tableau viz is based on the most recent, seasonally-adjust home sales. At the end of July, home sales stood at 511,000, down 36% from the beginning of 2022, and 28% versus the same time a year ago. In a little over a year, home sales have fallen 50% from their 15-year high of 1,021,000 in March, 2021

To learn more about the RDS Business Intelligence team, contact:

Kacey Rask : Vice-President, Portfolio Servicing

kacey.rask@rdscientists.com /513.489.8877, ext. 261