With inflation rates sitting at a 13-year high since September 2021, and holding steady at above 5 percent since June 2021, it comes as no surprise that mortgage rates have also been increasing. As of October 21, 2021, a 30-year fixed rate mortgage is averaging 3.09 percent according to reports from Freddie Mac. This is up 0.04 percent from the previous week, up from September’s 2.9 percent, and up 0.29 from this time last year

This may lead you to believe that a drop in home sales would coincide, as buyers should be put off by the continued rise in prices along with this increase in mortgage rates, but this isn’t what is happening. The National Association of Realtors (NAR) believes the increase in existing home sales took place because of buyers feeling pressure to purchase before a steeper rise in mortgage rates occurs. Existing home sales actually rose by 7 percent in September (when compared to August). In fact, NAR reported “All major regions of the country posted increases last month”. Some speculate this rise in September was due to an increase in supply.

As mortgage rates rise, naturally, refinance rates have fallen. Mortgage Bankers Association reported the refinance index decrease by 7 percent from the second week of October 2021. This marked a four-week decline that coincided with a continued rise in mortgage rates. Because of this, and a continued hot purchase market, lenders are now shifting their focus from refinances back to new sales. And for anyone not shifting their focus? Well, they’ll be watching their numbers lag behind those of the competition.

Track and Analyze Mortgage Lending Activity

For those brokers and lenders interested in keeping track of their competitors, you’ll want to make sure you have access to a module that can pull up those numbers for you with just a couple clicks of your mouse. Our Mortgage MarketShare Module can help you track and analyze lending activity. Gain 24/7 access to competing lending data and easily track market trends for yourself and set ambitious and attainable benchmarks for your lenders. While you’re at it, you may want to look at some of our other data solutions to pad your toolkit with.

Remember: we don’t want to force you into a one-size fits all box, so we’re happy to chat with you about the different subscription options that could work for you and your business needs. Just reach out to a data specialist to get started.