Alkami Telemetry Data – Mortgage Openings at 7-year Low

Mortgage openings at 7-year low impacted by both rising rates and rising home prices.

Source: 2023 Alkami Telemetry Data is sourced from a panel of more than 20 financial institutions with a range of asset sizes from under $500M to $15B. The data panel represents 2.16 billion transactions analyzed representing the financial behaviors of approximately 1.1 million account holders across 8 different age brackets. This analysis contains two charts, both showing the number of new mortgages opened each month. In the first chart, the companion line represents the prime interest rate; in the second chart, the companion line represents the median home sales price in the United States. Interest Rate and Median Home Sales Data sourced from the St. Louis Federal Reserve Bank at https://fred.stlouisfed.org

What we're seeing:

From March 2022, the Fed began raising interest rates to combat inflation. This increased the price of a mortgage and further drove new mortgage activity downwards, as existing homeowners were reluctant to replace a low interest mortgage rate with one at a new higher rate.

Takeaway:

A further decline in median home sales price along with a reduction in interest rates will probably be necessary before we see the number of new mortgage openings begin to increase.

Call to action for FIs: Look for additional opportunities to cross sell to this account holder audience with products such as a home equity line of credit.

Interested in learning how customer insights and marketing automation can empower your financial institution to find hidden revenue opportunities and grow your business? Check this out.