3 Characteristics of a Quality Mortgage Pricing Data Source
Faced with the double-edged sword of a rising rate environment and a shrinking number of borrowers, pricing strategy is critical to origination success. Finding ways to maintain production levels, while not giving away the farm on margin, is top of mind for all originators as we [...]
It’s a Lock: New White Paper Examines How Rate Lock Data Can Help Manage Portfolio Risk
Prepayment modeling is one of the most important elements in predicting a loan’s future cash flow. Cash flow, of course, is the primary value-driver for both mortgage-backed securities (MBS) and mortgage servicing rights (MSR). As prepayment activity increases, interest received [...]
Impact on Mortgage Rates from Rising 10-Year Treasury Yields
Early on in response to the COVID-19 pandemic, the Federal Reservere-engaged quantitative easing measures, injecting liquidity into the market and driving the 10-year Treasury to ~50 bps andmortgage ratesbelow 3% for the first time. In the months since, interest rates have [...]
The Bifurcation of Refinance and Purchase Rates
Published October 13, 2020
Historically, there has been little to no difference in refinance and purchase rates. A borrower looking to do a rate-term refinance on a primary residence would typically be offered the same rate as they would for a purchase loan on the same [...]
Market Volatility and the Anatomy of Mortgage Rates
Published March 18, 2020
Optimal Blue recently co-authored an article with Andrew Davidson & Co., Inc. (AD&Co), a leading provider of risk analytics and consulting for residential lending and MBS, titled Market Volatility and the Anatomy of Mortgage Rates. This timely article [...]