ALEXANDRIA, Va. (9/26/13)--Upward interest rate pressure could impact credit unions by reducing the market value of some long-term, fixed-rate assets and altering mortgage market conditions, National Credit Union Administration Chief Economist John Worth said in a new agency YouTube video.
The interest rate increases are tied to recent moderate economic growth and Federal Reserve statements, Worth noted. These increases helped to reduce total credit union unrealized gains by more than $3 billion in the second quarter of this year, he said.
General interest rate changes are also reducing the total number of mortgage refinance applications, and Worth said this change may have an immediate impact on fee income at some credit unions and depress real-estate loan growth for the rest of 2013.
The NCUA video also takes on labor market improvements and the NCUA's quarterly U.S. map review.
The video is the latest in a series of YouTube videos to inform the public and credit unions about general economic and credit union specific developments.
The videos can also be viewed on the NCUA's YouTube page by using the resource link below.