Optimal Blue Launches AI Forecasting Tool and AI Labs

Optimal Blue announced the general availability of Virtual Economist, an artificial intelligence-powered forecasting tool designed to assist leaders in mortgage capital markets with analyzing interest rates and mortgage lock volume. This launch was accompanied by the introduction of Optimal Blue AI Labs, an initiative spearheaded by Kevin Foley, the company's newly appointed director of AI Labs. The primary objective of AI Labs is to expedite the development and implementation of artificial intelligence capabilities across Optimal Blue's entire product suite. Kevin Foley presented on these developments alongside Sarah Wheeler of HousingWire at the AI Summit held in Dallas on Tuesday. During his presentation, Foley elaborated on the Virtual Economist, describing it as an AI and machine learning-powered forecasting instrument capable of predicting interest rates and lock volume under diverse macroeconomic scenarios. This functionality aims to empower lenders to strategically plan for business growth. The Virtual Economist, initially unveiled in beta form at Optimal Blue's annual summit in February 2026, integrates publicly available economic data with Optimal Blue's proprietary mortgage lock volume data. This proprietary data reportedly accounts for over 35% of all mortgage locks nationwide. The tool employs machine learning models to generate forecasts for interest rates and market volume. Users can leverage these models to run various scenarios, including those involving the 10-year Treasury yield, mortgage-backed securities spreads, and the primary-secondary spread. Foley emphasized that the tool is engineered to support lenders in navigating different macroeconomic conditions and making more informed business decisions. He further explained that the core value of AI in the mortgage industry lies in its integration within a company's existing framework, which he termed the "harness." This harness encompasses a company's institutional context, systems, and processes, enabling AI models to effectively address industry-specific challenges. Foley acknowledged the significant advancements in AI models in recent months but highlighted their general deficiency in understanding a company's specific operational details and the unique nuances of the mortgage industry. He indicated that the "harness" provides this crucial contextual layer, allowing AI to perform more effectively in specialized domains. The establishment of Optimal Blue AI Labs signifies a strategic commitment by the company to deepen its investment in artificial intelligence, aiming to drive innovation and enhance the analytical capabilities offered to its clients in the mortgage sector.