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ICE Launches Transaction-Based Indices for Residential Mortgage Interest Rates
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Rhea-AI Summary
Intercontinental Exchange (NYSE: ICE) has launched a new suite of U.S. residential mortgage locked rate indices that will be updated daily. These indices are based on actual loan applications processed by ICE Mortgage Technology, which handles nearly half of all U.S. residential mortgages. This approach provides a more accurate and timely reflection of mortgage interest rates compared to traditional survey-based indices. The indices cover various mortgage types, including conventional loans and government programs, and aim to enhance transparency and risk management in the mortgage-backed security market.
Positive
Launch of the new U.S. residential mortgage locked rate indices provides timely and accurate data.
Indices based on actual loan applications rather than outdated survey data, offering improved reliability.
Covers a broad range of mortgage types, enhancing its utility for various stakeholders.
Negative
None.
Calculated using anonymized rates data from ICE’s leading loan origination platform
ATLANTA & NEW YORK--(BUSINESS WIRE)--
Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of data, technology and market infrastructure, today announced the launch of 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Existing mortgage rate indices are often survey-based and can quickly become outdated.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).
Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks to connect people to opportunity. We provide financial technology and data services across major asset classes that offer our customers access to mission-critical workflow tools that increase transparency and operational efficiencies. We operate exchanges, including the New York Stock Exchange, and clearing houses that help people invest, raise capital and manage risk across multiple asset classes. Our comprehensive fixed income data services and execution capabilities provide information, analytics and platforms that help our customers capitalize on opportunities and operate more efficiently. At ICE Mortgage Technology, we are transforming and digitizing the U.S. residential mortgage process, from consumer engagement through loan registration. Together, we transform, streamline and automate industries to connect our customers to opportunity.
Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located here. Key Information Documents for certain products covered by the EU Packaged Retail and Insurance-based Investment Products Regulation can be accessed on the relevant exchange website under the heading “Key Information Documents (KIDS).”
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 -- Statements in this press release regarding ICE's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE's Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the SEC on February 4, 2021.
ICE has launched a suite of U.S. residential mortgage locked rate indices that track average interest rates for new residential home loan applications.
How are the ICE mortgage indices different from existing ones?
Unlike existing survey-based mortgage indices, the ICE indices are calculated from actual loan applications, providing more accurate and up-to-date information.
What types of mortgages do the new indices cover?
The new indices cover first-lien and subordinated mortgage applications for single-family and multi-family properties, including conventional, jumbo, and government-backed loans.
When are the ICE mortgage indices updated?
The ICE residential mortgage locked rate indices are calculated each business day and published the following morning.
How can I access the new ICE mortgage indices?
The new indices are available on the ICE Index Platform. More information can be found on the ICE website.
