Post an uptick in mortgage applications
California credit unions witnessed an uptick in mortgages over the past year, according to the latest snapshot report from the California Credit Union League that analyzed the year-over-year data trends for credit unions.
Credit unions in the state reported a 14% increase in first-mortgages year-over-year, which includes a mixture of fixed-rate, adjustable-rate, purchase, traditional refinance, and cash-out refinance.
Most notably, mortgages hit a record high outstanding dollar amount of $58 billion, rising 69% from the most recent low in 2011 of $34 billion. For added context, the last historical peak was $36 billion in 2009.
However, despite the record high in dollar amount, credit unions also posted an 8% year-over-year decrease in originations, falling to $2.82 billion.
This doesn’t come as too much of a surprise given the steady rise in home prices. According to S&P Dow Jones and CoreLogic’s latest report, home prices increased 5.5% in April.
Meanwhile, credit unions posted a 3% increase in the combined category of Home Equity Lines of Credit and home equity loans (second-mortgages). In total, the outstanding dollar amount hit $9.9 billion, rising 10% from the most recent low in 2014 of $9 billion. The record high was $14.2 billion in 2009.
As of late, regulatory pressure has hindered credit union growth. But, this doesn’t mean they aren’t doing well, as seen in the above numbers. Matt Kershaw, CEO of Clark County Credit Union, explained this in a recent interview with HousingWire. Kershaw noted that while credit unions have grown since the crisis, it’s not proof that regulations are not damaging the industry.