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 August 4 is 4.99%.
The current 30-year fixed mortgage rate has been up more than 55% since the beginning of 2022. Below we put mortgage rates in context, looking back 50 years by decade:
- 2020s: 3.41%
- 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.
- 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.
MBA Purchase Index
As of July 22, the Purchase Index sits at 206.4, down 26% since the beginning of 2022. We haven’t seen a Purchase Index this low since April 2020 when it hit 208.0
MBA Refinance Index
The Refinance Index stands at 631, down an astonishing 73% since the beginning of this year. You’d have to go back to December 2018 to find the Refinance Index at a similar level (730).
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. Versus a year ago, sales are down 13%.
Again, visit our Tableau Public site for an interactive look at all the topics discussed above and other aspects of the U.S. economy
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To learn more about the RDS Business Intelligence team, contact:
Kacey Rask : Vice-President, Portfolio Servicing
[email protected] / 513.489.8877, ext. 261
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