Today TovoData, the leading provider of multi-sourced real estate, mortgage and property ownership data sets spanning 100% of U.S. residential properties, released its Q1 2021 Mortgage Demand Index that shows continued strength in mortgage demand across southern and western states. The breadth of mortgage demand across states relative to existing single-family homes with a mortgage is as robust as data from Q4 2020 signaling confidence in the housing market through the 2021 buying season.
A Mortgage Demand Index (MDI) of 100 indicates that demand in a state is on par with the nation. During the first quarter of 2021, 19 states and the District of Columbia had a TovoData MDI over 100 and 40 had an MDI over 75, matching the results from fourth quarter 2020. For comparison, 21 states had an MDI over 100 in the first quarter of 2020 with 45 states and DC at MDIs over 75.
“Despite some concern over marginally higher mortgage rates, refinance demand remains robust with 33 states experiencing stronger demand for mortgage refinancing than purchases, up from 27 states last quarter,” said Sara R. Rutledge, Economic Consultant for TovoData. “Desirable interest rates, coupled with the ongoing flexibility to work from home, continue to drive consumer interest in both purchase and refinance loan options.”
The difference, or spread, between a state’s Refinance MDI and Purchase MDI shows how much stronger the concentration of refinance demand is relative to purchase mortgage demand. In 1Q 2021, 33 states have a positive refinance-to-purchase MDI spread, up from 27 states in 4Q 2020 despite the uptick in mortgage rates. The top ten states for this spread in 1Q have a Purchase MDI below 100 and include a mix of states by region from high cost Northeast states to second home locations. In each of these states, mortgage demand in 1Q 2021 is being driven more by a desire to maintain an existing home than interest in finding a new home.
“We are thrilled to be able to leverage both our real-time mortgage lead and nationwide real estate data assets to create the Mortgage Demand Index,” said Drew Warmington, CEO of TovoData. “The MDI is a powerful indicator for lenders to get ahead of pending demand in the purchase and refinance hotspots around the nation.”
Download the complete TovoData Mortgage Demand Index report and graphics here: https://tovodata.com/mortgage-demand-index-q1-2021/
TovoData is a leading data and analytics company that provides real estate, property ownership, and mortgage data. TovoData’s property data is available via its real estate API, bulk, match & append and marketing lists. Leading mortgage lenders, insurance providers, direct marketers, and real estate service providers look to TovoData for the most current, accurate data to fuel their apps, SaaS and business. You can find more information about the company at TovoData.com.
About The TovoData Mortgage Demand Index
The TovoData Mortgage Demand Index (MDI) measures the quarterly concentration of demand for new mortgages based on lead activity for purchase and refinance mortgages by state. The TovoData MDI is also produced as two subindices – the Purchase MDI and the Refinance MDI. The MDI serves as a predictive indicator for the concentration of mortgage originations across states in the next quarter. An index value of 100 means mortgage demand in a state is on par with the nation during the quarter. An index value above 100 means mortgage demand in a state is stronger than the nation during the quarter and an index value below 100 means mortgage demand in a state is weaker than the nation during the quarter.