ICE Launches Transaction-Based Indices For Residential Mortgage Interest Rates
Intercontinental Exchange, Inc. (NYSE: ICE), a provider of data, technology and market infrastructure, has launched a suite of U.S. residential mortgage locked rate indices. The new indices will be calculated daily and will track the average interest rate of new residential home loan applications processed by ICE Mortgage Technology.
Existing mortgage rate indices are often survey-based and can quickly become outdated. By using anonymized and aggregated data from ICE Mortgage Technology, which processes nearly half of all residential mortgages in the U.S., the ICE locked rate indices are calculated from actual loan applications. This provides a more comprehensive, accurate and timely reflection of current residential mortgage interest rates.
“Observable loan applications provide a wealth of information and can be important benchmarks for loan originators, banks and participants in the mortgage-backed security market,” said Lynn Martin, President of Fixed Income and Data Services at ICE. “By using a data-driven approach and leveraging the unique strengths of ICE’s mortgage technology and data services teams, we’re bringing a tremendous amount of new data to the market that can offer customers both strategic intelligence and help them manage risk.”
The ICE U.S. Residential Mortgage Rate Lock Index Series tracks 10, 15, 20 and 30 year first-lien and subordinated mortgage applications on both single-family and multi-family properties. The indices include new purchase, construction and refinance applications for conventional mortgage loans, jumbo loans and those submitted under U.S. government programs, including the Federal Housing Administration, U.S. Department of Veterans Affairs and the Rural Housing Service of the U.S. Department of Agriculture. The indices are calculated each business day and published the following morning.
“This index series leverages the unique transactional data that we receive from having the largest electronic network of mortgage stakeholders in the industry,” said Joe Tyrrell, President of ICE Mortgage Technology. “By anonymizing this data and working with the ICE Index team, we’re able to provide much more transparency and timeliness, as well as an established delivery system, to quickly bring this data to market and help meet the needs of our customers in both the mortgage lending and mortgage-backed security market.”
In addition to the broad ICE U.S. Residential Mortgage Rate Lock Composite Index, ICE has launched sub-indices focused on attributes including product type (Conforming or Jumbo 30-year fixed rate), loan purpose (purchase, construction or refinance), and borrower attributes (FICO score, LTV, among others).
The ICE U.S. Residential Mortgage Locked Rate Indices are available over the ICE Index Platform. For more information, please visit https://www.theice.com/market-data/indices/mortgage-rate-lock-indices.
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