Homebuyers are turning to credit unions for their mortgages, which is providential for the industry. Data from the latest CUNA Mutual Group Credit Union Trends Report revealed that credit union first mortgages grew by 1.3 percent during June. The figure represents 8.3 percent year-to-date growth. A boom in adjustable-rate first mortgage balances shows them up 11.1 percent during the first two quarters of 2016.
CUs now hold $341 billion in first mortgages and 3.6 percent of the entire mortgage market – up 3.2 percent from last June, CUNA Mutual said.
CUNA Mutual said home prices were up by 1.1 percent in June and 5.7 percent year-over-year, and the Core Logic Home Price Index – the source of CUNA Mutual’s data – is now 44 percent above its low point from March 2011 and just 6.7 percent behind the peak set in April 2006.
“Home prices are expected to rise another five percent in 2016 and four percent in 2017. Therefore, home prices should reach new highs by the end of 2017,” said CUNA Mutual.
Home purchase lending hit a post-2007 high in the second quarter as low interest rates and growing consumer confidence continue to support the housing market. Read more at CU Journal.