In statistics, we’re taught a four-stage progression of data maturity: DDPP. But in the real world, especially when dealing with mortgage rates, inflation, and shifting housing markets, the fourth pillar is often misunderstood.
1. Descriptive: The “What”
This is our baseline. What are rates today? What is inventory doing? It’s a snapshot of the present. Necessary, but purely backward-looking.
2. Diagnostic: The “Why”
Now we ask why. Why did inventory tighten? Why did buyer demand shift? We start connecting policy, rates, and behavior. This gives us insight but not control.
3. Predictive: The “What’s Next”
Here’s where strategy begins. We use trends and data to forecast direction. Where is inflation heading? How might the market react to Fed moves? This is where most professionals operate.
4. Prescriptive: The Illusion of Control?
This is where things get interesting.
Prescriptive analytics is supposed to tell us exactly what to do to achieve a desired outcome.
But here’s the reality:
We can’t prescribe the economy.
We can’t optimize mortgage rates.
We can’t solve inflation with a model.
What we can do is prescribe our response.
If the data suggests a storm is coming, the move isn’t to fight it, it’s to position yourself intelligently.
Sometimes that means holding.
Sometimes that means restructuring.
Sometimes that means waiting.
Not acting is often the most strategic decision you can make.
If you want to walk through your specific situation and see what the data is actually saying, I’m always open to a conversation.
📧 robert@livinginphoenix.net
📱 480-415-0783