iEmergent has developed some simple metrics to help better explain the differences in markets' sizes and behaviors. Here are some of the most commonly used metrics you will find in our tools and tables:
Mortgage Opportunity Totals -- The projected number of all purchase or refi loans and dollars originated in a particular market for a given year, including single-family 1-4 property types. Excludes loans on multi-family residences, co-operatives, and home improvement loans.
Average Loan Sizes (PALS, RALS, ALS) – The Average Loan Sizes are calculated for each forecasted year - for Purchase, for Refi and for Purchase + Refi. Although related to the average home prices in a market, PALS are preferable to Home Price Indexes because they quantify the opportunity for lenders, as opposed to looking at all real estate transactions including cash.
Purchase Mortgage Generation Rates (PMGR) –The rate at which a market generates purchase mortgages in a year. The PMGR is one of the key drivers of the forecast methodology, as it encapsulates many independent data variables, including unemployment, household growth, net household migration, world and national economics, and many other demographic and housing indicators.
Mortgage Velocity Index (MVI) –The rate of growth of mortgage loans in a market over the next five years. The MVI is used to easily understand how quickly one market is growing in loan units compared to the U.S. purchase market over the same five years.
Mortgage Opportunity Index (MOI) – The rate of growth of mortgage dollars in a market over the next five years. The MOI is used to easily understand how quickly one market is growing in loan dollars compared to the U.S. purchase market over the same five years.
Mortgage Density Metrics:
Purchase Mortgage Density of Loans (PMD - Loans) – The density of purchase loans generated per 1,000 homeowners in a market each year. This metric allows for easy comparison between geographies of different sizes.
Purchase Mortgage Density of Dollars (PMD - Dollars) – The density of purchase mortgage dollars per 1,000 homeowners in a market each year. This metric allows for easy comparison between geographies of different sizes.
Purchase Mortgage Density By Area (PMDA) – The density of purchase mortgage dollars per square mile in a market each year. This metric allows for easy comparison between geographies of different sizes.