The RDS Business Intelligence team recently updated its Real Estate dashboards on its Tableau Public page. CLICK HERE to check out all of the interactive dashboards on our Tableau Public page. MORTGAGE RATES
The 30-year fixed mortgage rate continues its precipitous climb, hitting 7.08% on October 27, before dropping back slightly to 6.95% for the week of November 3 . For the month of October, the average rate was 6.90%, more than double the 3.07% rate of October, 2021. Having started 2022 at the historic low of 2.65%, the 30-year fixed rate has risen 162% in the span of 10 months. The current 6.95% rate is more than a 20-year high, dating back to April, 2002. Below we put mortgage rates in context, looking back 50 years by decade:
- 2020s: 3.65%
- 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 160.5, down 40% versus YAG, and down 54% versus 2022’s high mark of 348.2 on January 15.down 34%. The current purchase index is almost an 8-year low, dating back to January 2, 2015 (159.2). 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 dashboard is based on the most recent, seasonally-adjust home sales. At the end of September, home sales stood at 603,000, down 12% from September and 25% versus the same time a year ago. In a little over a year, home sales have fallen 41% 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
[email protected] /513.489.8877, ext. 261
