CUNA Senior Economist Steve Rick disagreed, saying he's not worried about interest rate risk, because "We won't see a 300 to 400 basis point rate increase anytime soon."

This economic recovery will be "one of the weakest we've ever seen," he said, which means prices will "remain weak for awhile." When the Fed raises rates, it will do so slowly, and credit unions will have plenty of time and opportunities to adjust, Rick said.

Western Corporate Federal Credit Union Vice President of Economic Research Dwight Johnston agreed with Rick, saying, "Raising short-term rates is nowhere on the Fed's horizon."

Holding mortgages always implies rate risk, he said, and today's low rates aren't favorable. However, Johnston said long-term rate volatility could be a problem, and timing could make a big difference in margins and income over the long life of a mortgage.

"Just like in the stock market, you'll often see investors scrambling to buy after stocks have already surged, or panic and sell after stocks have already fallen," Johnston said. "Credit unions do not have unlimited capacity to add mortgages because of the added interest rate risk, as must be measured by regulation. Therefore, timing is critical, and credit unions should avoid being caught up in emotional and volatile market movements."

Once mortgages are on the books, they can last for a very long time, he cautioned.

After peaking at 5.59% June 11, 30-year, fixed mortgage rates decreased significantly. Freddie Mac reported July 9 that 30-year, fixed mortgages averaged 5.20%, down from 5.32% the week before. One year ago, 30-year fixed mortgages averaged 6.37%.

Rates were highest in the north central part of the country, averaging 5.29%. The West reported the lowest rates at 5.17%. Fees and points averaged 0.7% of the loan amount.

"Interest rates for 30-year, fixed-rate mortgages fell for the second week in a row to the lowest level in six weeks amid market concerns over a weakening labor market," said Frank Nothaft, Freddie Mac vice president and chief economist. "The economy lost 467,000 jobs in June, more than the market consensus, and the unemployment rate rose to 9.5%, the highest since August 1983. Moreover, hourly employee wages increased at an annual rate of 0.7% on average in the second quarter of 2009, the smallest gain since records began in 1964."

Even the NCUA weighed in on the topic, with Director of Public and Congressional Affairs John McKechnie saying, "The current concentration of real estate loans on credit union balance sheets is an area of concern for NCUA, particularly when interest rates start to rise. NCUA is continuing its proactive supervision in this area."

Wai said liquidity could also become a problem if consumers return to old spending habits and banks increase competition for deposits, increasing loan-to-share ratios. "You can't fund long-term assets with short-term money," he said.

ProfitStars Consultant Jerry Boebel agreed there is some interest rate and liquidity risk involved in holding low-rate, fixed mortgages on credit union balance sheets. However, he said there is no blanket answer to the question of whether to sell or hold mortgages, because a credit union's individual risk tolerance, risk-management expertise, and culture determine the answer.

He did agree with Wai regarding the potential for liquidity risk. Boebel added that it's not necessary to "match assets dollar-for-dollar" when managing liquidity, and said core deposits "aren't as short term as you'd think."

"People are going to get brave again and eventually start spending," he said.

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