The Mortgage Market Is Resilient – But Not Immune
Despite persistent headlines about a sluggish spring season, the mortgage market is showing surprising strength. In the May 19 episode of Optimal Insights, Jim Glennon and James Cahill discuss the latest economic data and what it means for lenders navigating a volatile environment.
Here’s what you need to know this week.
Key Insights and Trends
CPI came in at 2.3%, slightly below expectations, while PPI posted a surprising -0.5%, suggesting inflationary pressures may be easing – at least for now.
Tariffs are distorting the data. A rush to import goods ahead of new trade restrictions has inflated inventories, temporarily muting price increases at the wholesale level.
Consumer behavior is shifting. With prices expected to rise, buyers are becoming more selective, and retailers are absorbing costs to avoid alienating customers.
Walmart’s CFO recently warned of rising prices and product shortages by June, underscoring the broader economic tension. If the largest retailer in the U.S. is bracing for impact, smaller players will feel it even more acutely.
“We've been working towards a soft landing for half of a decade now. This is kind of progressing in the right direction. This is what they [the Fed] want to see.” – James Cahill
AI in Mortgage: From Buzzword to Business Driver
The second half of the episode shifts gears as Kevin Foley, CFA and Shawn Chandwani discuss the transformative role of artificial intelligence in mortgage operations.
Optimal Blue isn’t just talking about AI – we’re building it.
Here’s what’s already live:
Ask Obi: A conversational AI interface that gives capital markets teams instant access to performance data, lock volumes, and margin insights from their Optimal Blue products – no spreadsheets or analysts required.
Originator Assistant: An AI-powered tool that helps loan officers identify the most favorable terms for borrowers by analyzing small scenario changes. It’s fast, intuitive, and built to optimize pricing strategies.
These AI-powered tools are already in production and available to Optimal Blue clients at no additional cost.
Practical Actions You Can Take Today
If you’re a lender looking to stay competitive, here’s what you should be thinking about this week:
Don’t wait for perfect conditions.
The market is moving. Inflation is cooling, but tariffs and consumer sentiment are wildcards. Stay nimble.
Start your AI journey now.
Whether it’s automating data access or optimizing pricing, AI is no longer optional – it’s a competitive advantage.
Invest in your data.
Clean, structured data is the fuel that powers effective AI. If your systems aren’t ready, now’s the time to modernize.
Whether you’re in capital markets, secondary marketing, or origination, the message is clear – adaptation is no longer optional. It’s strategic.
Listen to the latest episode of Optimal Insights for deeper analysis and expert commentary. Available on all major podcast platforms: https://optimal-insights.captivate.fm/listen
The views and opinions expressed in this program are those of the speakers and do not necessarily reflect the views or positions of Optimal Blue, LLC.