Skip to main content

Mortgages (2Q20)

Low interest rates and federal aid combined to create a surge in demand for home financing, as both refinances and purchases performed well in the second quarter.

The mortgage origination market has never had a more successful quarter. According to data from the Mortgage Bankers Association, lenders granted $928.0 billion in new mortgages nationwide between April and June, almost $200 billion more than the previous quarterly record set in the second quarter of 2006. Federal Reserve rate cuts were instrumental to this boom, as Americans rushed to take advantage of record-low interest rates. Of note, refinances accounted for an estimated 62.5% of second quarter mortgages, and credit unions historically have thrived in refi-heavy environments.

Key Points

  • Credit unions originated $130.0 billion in first mortgages year-to-date, the most in any six-month period on record.
  • Fixed-rate mortgages comprised 78.4% of total mortgages originated this year, up 11.4 percentage points from 2019. Balloon/hybrid loans made up 15.5%, and adjustable-rate mortgages accounted for the remaining 6.2%.
  • On the balance sheet, first mortgages outstanding increased 12.8% annually and surpassed $500 billion. Mortgages represented 43.6% of the loan portfolio for credit unions nationwide, the highest on record.
  • Total mortgage sales to secondary markets increased 121.1% annually to $51.7 billion. This total makes up 39.8% of mortgages originated year-to-date.

 

The Bottom Line

Near-zero interest rates and federal aid together created a surge in demand for home financing, pushing mortgage growth to surpass all expectations in the second quarter. Purchases performed well, but refinances were the driving force as many people looked to save money on their existing homes. Naturally, refinances have helped keep delinquency rates low, but credit unions should still closely monitor repayment rates if unemployment remains high.

William HuntBy William Hunt

 

 

Comments

Post a Comment

Please no profanity or political comments.

Popular posts from this blog

A Perfect Example - What Makes Credit Unions Different from Banks!

When the government shutdown hit in October and paychecks stopped, thousands of federal employees were left wondering how to make ends meet. Credit unions across the country stepped up—but Keesler Federal Credit Union went above and beyond. No loans, no hassle—just your paycheck Instead of making members apply for emergency loans, Keesler Federal launched its Paycheck Relief Program. Revolutionary in its simplicity, it worked like this: if you were a federal employee with direct deposit at Keesler Federal, your paycheck kept coming—interest-free, fee-free, and stress-free. Each qualified member could receive up to $6,000 per pay period for as long as 90 days. No hoops, no headaches. From October 1 until the shutdown ended, Keesler Federal advanced more than 5,000 paychecks totaling $6.5 million to 1,710 members. For non-members, they even offered zero-interest loans up to $6,500 with a year to pay it back. This proactive approach meant that before the first missed paycheck, Keesler Fed...
Post a Comment
Read Complete Article HERE>»

Sunday Reading - What's the point of a consumer electronics show?

  What's the point of a consumer electronics show? Consumer electronics shows are large convention-type events where companies debut new technologies and products. The largest and most notable shows are CES in Las Vegas, a trade show every January, and IFA Berlin, which takes place annually in September. The events have historically introduced novel, cutting-edge products that later became household standards, like HDTVs, VCRs, DVDs, and gaming consoles ( see list ).   Over time, these shows evolved from product showcases ( see last year's coolest gadgets ) into complex industry ecosystems, serving as a meeting ground for startups, multinational technology companies, investors, and the media. Hardware launches, keynote speeches, and...
Post a Comment
Read Complete Article HERE>»

Eight Credit Unions Pay $42 Million in Special Dividends to 1.1 Million Members

  By  Jim DuPlessis   | January 05, 2026 at 04:00 PM So far this season, CU Times has tallied 19 credit unions, which have announced $160.3 million in special dividends for members.       Eight more credit unions have reported special dividends, paying their 1.1 million members $42.1 million in December and January. The bulk of the dividends came from Police and Fire Federal Credit Union of Philadelphia and Eastman Credit Union of Kingsport, Tenn., which each announced $16 million in rewards approved by their boards. The late January payout from Eastman ($9.7 billion, 356,492 members) will bring its total special dividends to $225 million since 1998. A news release from the credit union said “the Extraordinary Dividend is never guaranteed, but the strong financial performance of ECU in 2025 enabled the Board of Directors to approve this year’s $16 million payout.” Eastman’s $16 million payout represents about $47 per member and 19 basis points of its averag...
Post a Comment
Read Complete Article HERE>»

Syracuse Fire Department Credit Union

 Congrats, Tonia, on your promotion! ================================================= Remember, you're not alone with  NCOFCU.org Join/Upgrade Check out some of NCOFCU's additional features: First Responder Credit Union Academy Financial Literacy Podcasts YouTube Mini's Blog Job Board
Post a Comment
Read Complete Article HERE>»

Sunday Reaing - Can the seasons really make you depressed?

    Can the seasons really make you depressed? Seasonal affective disorder   is a form of depression that repeats during predictable seasonal shifts, impacting an estimated 5% of the global population—predominantly women. Symptoms of the condition occur with significant cyclical changes in daylight hours, with prevalence increasing in regions north of 40 degrees latitude (less commonly in the Southern Hemisphere). Its etiology—or root cause—remains unclear to researchers. Though “winter blues” are commonly reported, SAD is a distinct, diagnosed subtype of major depressive disorder first formally described in 1984 ( see criteria ). Key symptoms—lasting roughly four months each year—resemble common depression: fatigue, increased sleep, carbohydrate cravi...
Post a Comment
Read Complete Article HERE>»

What Could Tokenized Deposits Mean for CUs?

WASHINGTON—Noting that the FDIC has expressed support for tokenized deposits as insured bank liabilities, not experimental digital assets, a new analysis offers some insights into what that could mean for financial institutions, credit unions and the market in 2026 and beyond.  As PYMNTS Intelligence pointed out in its report, regulatory clarity reduces risk for banks moving from pilots to live deployments, and large banks and infrastructure providers are already testing real-world tokenized deposit use cases.  “At its simplest, tokenization converts an existing claim into a digital representation on a distributed ledger,” the report explained. “The underlying asset does not change, but the infrastructure that tracks ownership and settlement does. In banking, that distinction is critical. Tokenized deposits do not create new money. They represent traditional bank deposits, issued and redeemed by regulated institutions but designed to operate on modern, programma...
Post a Comment
Read Complete Article HERE>»

Auto Link, Home Link, and CalcuLink Unite Under New Parent Brand: Centergy Solutions

Auto Link, Home Link, and CalcuLink Unite Under New Parent Brand: Centergy Solutions Auto Link announced a major rebrand that unifies its three established product lines- Auto Link, Home Link, and CalcuLink- under one cohesive parent brand. The transition marks a strategic evolution designed to simplify the company’s ecosystem, strengthen product synergy, and enhance the overall experience for credit unions and the members they serve. The new Centergy Solutions brand reflects the company’s mission to deliver a more connected and integrated suite of digital tools across auto and home lending, auto and home buying, and financial decision-making. From an operational perspective, the unified brand also allows Centergy Solutions to accelerate innovation and improve platform alignment. Under the new parent brand: • Auto Link continues to support financial institutions with industry-leading digital auto lending tools that boost member engagement and loan volume. • Home Link provides consume...
Post a Comment
Read Complete Article HERE>»

Fed Raises Rates to Highest Point Since 2001; Here's What CU Economists Are Saying

WASHINGTON—Emphasizing it remains “highly attentive to inflation risks,” the Federal Resoerve has moved to hike interest rates by 25 basis points, setting the target range for federal funds at 5.25 to 5.5%--their highest level since 2001. The Federal Open Market Committee made the announcement Wednesday at the close of its July two-day meeting here, and suggested it may not yet be done with rate increases. “Recent indicators suggest that economic activity has been expanding at a moderate pace. Job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated,” the Fed stated in a release. Tighter Conditions “Tighter credit conditions for households and businesses are likely to weigh on economic...
Post a Comment
Read Complete Article HERE>»

NAFCU is offering a free webinar today on PPP

ARLINGTON, Va.—NAFCU is offering a  free webinar today  to help credit unions better understand the process for offering loans through the Small Business Administration's new Paycheck Protection Program (PPP). Just a day ahead of the launch of the program itself, the SBA last week released an interim final rule to implement the program. In response,  NAFCU developed an FAQ document  answering 22 questions credit unions are likely to face as they consider participating in the program (see related story). Previous guidance from the Treasury Department indicated all federally-insured credit unions will be able to offer loans under the program, but those that are not currently SBA-approved lenders  must submit an application  to become one. During today’s webinar, set to begin at 4 p.m. ET, credit unions will hear from Steve Meirink, executive vice president and general manager of compliance solutions in the Governance, Risk & Compliance division a...
Post a Comment
Read Complete Article HERE>»

Are Credit Unions Serving First Responders Ready for the Coronavirus?

As the coronavirus outbreak continues to grow are credit unions serving first responders ready? Credit unions serving first responders will be a primary point of contact as first responders come off duty and into the credit union. ARLINGTON, Va.—How effective are credit union plans for addressing pandemics and business continuity?   It’s a question credit unions need to be asking right now as the coronavirus outbreak continues to grow. Death tolls this week topped 1,100, with a record 100 officially reported as getting sick in a day. The coronavirus has already surpassed SARS (severe acute respiratory syndrome) in number of affected and killed. Experts told CUToday.info the growth of the coronavirus that CUs should be reviewing their pandemic and business continuity plans, which likely have not been visited since the SARS outbreak in 2002. “I think it's too early to tell what kind of impact the coronavirus may have here in the U.S.,” said NAFCU Vice ...
Post a Comment
Read Complete Article HERE>»