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Mortgage Industry Data

We give lenders access to the most complete mortgage industry data available with LendersBenchmark Analyzer.

Higher rates and scarce inventory have crippled loan demand in the mortgage industry, resulting in decreased mortgage volumes at a time when the US housing market is at its highest equity level in history. Our data offers granular pricing solutions that enable lenders to take full advantage of this difficult market.

Mortgage Lending Insights

For an understanding of the condition of the lending market, accurate mortgage industry data is crucial. Lenders can make informed decisions and comprehend current market dynamics by examining data that encompasses rates and trends across the market.

After two consecutive banner years 2022 ended with many lenders in survival mode:
The last ten years have seen a roller coaster of development in the mortgage sector, with the years 2021–2022 being particularly successful for many lenders. However, the mortgage rate landscape drastically changed at the end of 2022, forcing many lenders into survival mode. Being able to obtain precise and timely mortgage industry data is crucial for lenders to keep informed and get ahead of the competition as the market continues to change. 

The lending industry experienced a wave of mergers and acquisitions because of rising interest rates:
Due to shifting market conditions, the mortgage market is changing:

  • Increases in interest rates has meant the market has been awash with mergers and acquisitions
  • Lenders can obtain crucial insights to understand current market conditions and make positive strategic decisions for their business

 

 

Rates are rising but the pace is slowing:

According to recent data mortgage rates are still rising but the pace has slowed down. The property market is still strong, and buyers are entering the market despite the increase in mortgage rates. This is because there are numerous mortgage products available and there are economical interest rates. Buyers now have more options when it comes to financing and selecting the best loan according to their personal circumstances. 

Key trends to watch in 2023:

Extraordinary changes are underway in the US mortgage industry, and it is crucial for any business operating in the sector to be informed of the developments.

2023 represents the highest equity market in history and with that, lenders are leaning into the home equity product space to supplement higher rate restrictions. 2023 is going to be a year of lenders bridging the gap between home equity and mortgage offerings to ensure borrowers take the right products for them – customizing the experience for the customer benefit.  

Developments in the mortgage industry include:

  1. A switch from conventional to digital platforms
  2. A step towards more consumer-friendly products
  3. An increase in regulation through Qualified Mortgages

With more automation and the use of data to enhance the customer journey, lenders are also putting more of an emphasis on the customer experience. Finally, as non-bank lenders take a larger share of the market, competition is escalating. Success in the mortgage market depends on an understanding of these trends.

A hawkish Fed compared to market expectations:

Federal Reserve Chairman Jerome Powell announced in early February 2023, that inflation is beginning to ease, though he expects it to be a long process and cautioned that interest rates could rise more than markets anticipate if the economic data doesn’t cooperate.

What could this mean for the Mortgage Lending?

Investors can look to achieve pricing in line with target returns by using data from the mortgage market. By using the insight, investors may decide when to invest more wisely and understand how to invest in a way that will optimise their returns. With rates likely to plateau in this year, and the expectation they will go down in 2024, 2023 is predicted to be somewhat of a mutual market.

Nowhere is the mortgage shakeout more apparent than in the wave of mergers and acquisitions that have washed across the industry ever since interest rates started to rise. And that wave is occurring even though credit trends aren’t deteriorating significantly. Courageous buyers view the upheaval as an opportunity to enter new markets and then cut costs from overlapping operations. As these are early days, it is unclear whether these classic strategies to grab market share will ultimately succeed. If economic conditions deteriorate and credit trends weaken, some lenders may experience buyer’s remorse. What’s clear is that the industry’s trends aren’t showing any signs of recovery, with volume down 53.3% year over year. Market trends are showing lower weighted average FICOs (dropping from 760 to 745), higher LTVs (increasing from 72% to 81%). Both metrics are associated with a move away from the refinance boom and toward a stronger purchase market. This means that buyers can’t rely on new geographies to guide them to better times. Instead, lenders will need to keep charging ahead with efforts to optimize margins by using granular pricing strategies. They also must have a clear retention strategy for their mortgage servicing portfolio because recapture will represent a significant opportunity when rates start to come back down. Curinos’ Head of Real Estate and Consumer Lending, Brandonn Dukes, is responsible for the development of solutions to include new business tools and services enhancing our client’s ability to achieve margin, share, risk, and operational objectives. 2023 represents the highest equity market in history, and with that, lenders are leaning into the home equity product space to supplement higher rate restrictions. 2023 is going to be a year of lenders bridging the gap between home equity and mortgage offerings to ensure borrowers take the right products for them – customizing the experience for the customer benefit.  In 2023, we will see lenders bringing personalization to the table for borrowers – offering mortgage and home equity products to ensure a good fit. 2023 represents the highest equity market in history, encouraging lenders to lean into the home equity space. Balancing the needs of the customer’s cash requisites, and offering the best possible borrowing options, is going to be crucial for lenders this year. Lenders must be adaptable in their product offers and able to switch from one client’s needs to another: Data is crucial for making well-informed decisions in the mortgage market. To guarantee the greatest results for their clients, lenders must have access to complete, trustworthy insights. Lenders must have flexible products and the capacity to switch from one consumer to another to maximise the value of their data. Lenders now have access to the market information they require through Curinos, enabling them to remain competitive and offer their clients the best possible service. The mortgage market is experiencing increased activity because of an increase in buyer activity in the housing market, who are keen to benefit from low mortgage rates. Curinos’ Rutger van Faassen notes that purchasers now have an incentive to purchase as they can profit from lower mortgage rates while they are available and will still be in a good position to purchase when rates rise again. The data from the mortgage sector plainly shows that consumers are ready to buy homes, which is good news for the housing market.

What The US Housing Market Will Look Like In 2023:

Experts are making predictions about the state of the housing market in 2023 based on the changing landscape from the mortgage industry. Key themes are emerging:

  1. The market is anticipated to remain competitive if borrowing rates come down and home demand rises
  2. Over the coming years, home prices are expected to increase more quickly than incomes, making it harder for purchasers to enter the market
  3. A rise in construction costs is also anticipated because of the pandemic’s shortages of manpower and building supplies – pushing mortgage payments higher

Want to go further?

Contact us to learn more about how Curinos can help you navigate today and prepare for tomorrow.