CHARLOTTESVILLE, Va. As mortgage rates continue a steady climb, U.S. financial institutions could be facing a significant decline in mortgage volumes during the second half of 2013, according to projections being made by SNL.
At the beginning of the year, SNL said it found that the average 15-year fixed mortgage rate was less than 3% for U.S. banks, thrifts and credit unions. This number jumped to around 3.5% in August. The nation's 30-year fixed mortgages followed a similar trajectory, rising from an average of around 3.5% at the outset of 2013 to higher than 4.4% in August.
At June 30, SNL-covered banks and thrifts experienced a 1.18% quarter-over-quarter decline in total one- to four-family mortgages, and a 2.06% year-over-year drop. During the second quarter, 14 of the 20 largest publicly listed U.S. banks and thrifts experienced a linked-quarter decline in total mortgages. Total mortgages dropped year over year for 13 of the companies in this group, the company said.
JPMorganChase, the nation's largest bank by assets, saw total mortgages drop more than 1% quarter over quarter, and more than 6% year over year. There were some exceptions to this trend, American Banker, an affiliate of Credit Union Journal, reported. For example, both KeyCorp and Zions Bancorp. experienced residential mortgage growth quarter over quarter and year over year.
