Optimal Blue launches AI-powered mortgage forecasting tool

Optimal Blue has announced the general availability of Virtual Economist, an artificial intelligence-powered forecasting tool. Designed for mortgage capital markets leaders, the tool uses machine learning to predict interest rates and mortgage lock volume under various macroeconomic scenarios. It integrates public economic data with Optimal Blue’s proprietary data, which covers more than 35% of mortgage locks in the United States.

In conjunction with this launch, the company established Optimal Blue AI Labs, an initiative aimed at accelerating AI development across its product portfolio. Kevin Foley has been appointed as the director of AI Labs. Foley noted that while AI models have improved, the value of such tools lies in providing the institutional context and industry-specific nuances required to solve complex mortgage problems.

Separately, the company’s July 2026 Market Advantage mortgage data report indicated a softening in mortgage activity. Rising rates impacted both purchase and refinance demand, resulting in an 11% month-over-month decline in total rate-lock volume, though this figure remained 5% higher than in July 2025.