Over the next year, mortgages outstanding are expected to increase even as lending and delinquency fall — with the Mid-Atlantic faring best.
For all of this year, mortgage originations are predicted to reach $1.600 trillion, slightly less than the $1.630 trillion estimated for last year.
U.S. residential loan production
is then expected to move lower next year, with the outlook for 2017 home lending declining to $1.450 trillion.
Those were just some of the findings from the Economic & CU Monitor for May from the National Association of Federal Credit Unions, which is based on credit union survey responses.
The report indicates that refinance share will drop from 46 percent last year to 40 percent in 2016 and 28 percent the following year.
Outstanding first mortgages held by credit unions are expected to grow over the next 12 months.
First-mortgage growth is expected to be strongest in the Mid-Atlantic and Southeast and weakest in the Northeast.
But U.S. refinance share is expected to modestly decline — with the
biggest decline expected in the Northeast. The Mid-Atlantic was the only region where refinance share is expected to widen.
NAFCU indicated that other real estate loans owned by credit unions are also expected to increase. The Mid-Atlantic is expected to see the most growth, while the Midwest and the West are likely to see no growth.
First-mortgage delinquency is expected to improve over the next year. The biggest decline is expected in the Mid-Atlantic, and no change is expected in the West.
On other real estate loans, a national decline in delinquency is projected — with the Midwest expecting the most improvement. An increase in past-due payments, however, is expected for the Mid-Atlantic.
