MADISON, Wis. — Credit unions maintained a strong level of real estate lending in September, along with increased year-to-date loan growth compared with last year's pace. However, flagging consumer confidence and fears of a prolonged recession likely will result in weak consumer lending in the fourth quarter, a CUNA economist has said.

Home equity loans led growth (2.5%), followed by adjustable-rate mortgages (2.2%), fixed-rate first mortgages (1.1%), used-auto loans (0.9%), unsecured personal loans (0.5%) and new-auto loans (0.4%).

Fixed-rate first mortgages and adjustable-rate mortgages had the highest year-to-date increases, 15.1% and 11.8%, respectively.

Fixed-rate first mortgage loan balances rose 1.1% in September and 3% for the third quarter. Year-to-date total loan growth came in at 6.2%, up from last year's 4.8% pace, Steve Rick told News Now.

“Falling consumer confidence and expectations of a deep and prolonged recession will keep consumer lending weak in the fourth quarter,” he added. “However, with banks tightening their mortgage loan underwriting standards, credit union real estate lending will continue to dominate credit union loan portfolio growth.”

Credit unions' 60-plus-day delinquencies increased slightly to 1.1% from 1% in August.

Instant Insights /

CUs Real Estate Lending Stays Strong in September

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