In the third quarter, credit unions should be anticipating a decrease
in their number of mortgage loan originations as refinancing slows
due to the recent run-up in interest rates. In particular, higher
rates on 30-year and 15-year fixed rate mortgages have deterred
many from these loans and this will make it difficult for credit
unions to generate higher mortgage loan volume.
This trend differs greatly from the previous quarter. In mid-June,
the rate on 30-year fixed rate mortgages reached a record low of
4.99% while the 15-year fixed rate mortgage dipped to a record 4.41%.
As a result, credit unions saw a huge jump in mortgage loan originations
and sales as shown below.