Credit Union VP Expects Rate Change

A credit union vice president joins those expecting the second half of 2013 to bring a slow but steady increase in mortgage rates as the Fed begins to reduce the amount of mortgage-backed securities being purchased as QE3 winds down.

Matthew Abbink, VP of direct lending for CU Members Mortgage, told Credit Union Journal his company expects to see demand for refinance transactions slow down from previous highs in late 2012 due to higher interest rates.

"The housing market continues to forecast steady recovery and improvements in home values in many areas," he said. "Purchase demand should continue to be healthy and perhaps increase as first time homebuyers attempt to enter the market before rates increase further."

"Many regulatory changes take effect in early 2014 and lenders must be preparing policies, procedures, and operating system changes now in anticipation of significant reform."