Federal Reserve: Credit Unions Increase Outstanding Credit in August
Credit unions posted another gain in consumer credit, according to a Friday release from the Federal Reserve.
The non-profits increased overall credit by $29.4 billion during the month of August, with $8.7 billion gained in revolving credit and another $20.7 billion worth of non-revolving credit added to balance sheets.
Overall, the gains boosted total credit union consumer credit outstanding to $238 billion as of August month end, up from a total of $235.6 in July.
Other credit holders, including banks and finance companies, also experienced gains during August, to increase total outstanding consumer credit to $2.7 trillion. That marks an 8% seasonally adjusted increase in August, after a dismal -1.1% decrease in July.
However, the new loans were tempered by stagnant or declining interest rates. The Fed reported that the average 48-month new auto loan rate charged by commercial banks held steady at 4.88%, where it has been since May, and the average rate commercial banks charged for 24-month personal loans fell to 10.39%, down from 10.94% in May. The Fed did not report interest rates in June or July, nor does it track credit union rates.