Credit Union Loan Growth Continues to Sag
CUNA data shows further softening in auto loans and mortgages in April.
CUNA reported Tuesday that credit union loan growth from cars to homes continued to sag in April.
The trade group’s Monthly Credit Union Estimates show the nation’s 5,724 credit unions held $1.08 trillion in loans on April 30, up 7.7% from a year earlier.
Growth for total loans peaked at 10.9% two years ago, and has been tapering off. The slowing U.S. economy led CUNA in April to lower its forecast for 2019 loan growth to 7.75% from an 8% forecast early this year.
Total car loans rose 8.5% to $377.9 billion in April, down from a peak of 16.4% in February 2015, while total real estate loans rose 7.6% to $532.3 billion, down from a peak of 10.4% in May 2018.
Estimates of portfolio loan growth over the 12 months ending April also included:
- New auto loans rose 9.4% to $150.1 billion.
- Used auto loans rose 7.8% to $227.8 billion.
- Unsecured loans rose 8.9% to $106.9 billion.
- Fixed-rate first mortgages rose 7.5% to $316.4 billion.
- Adjustable-rate first mortgages rose 6% to $123.1 billion.
- Second mortgages rose 11.4% to $33.5 billion.
- Home equity lines of credit rose 9.8% to $59.4 billion.
Meanwhile, the NCUA expects to release detailed data on first-quarter credit union performance on Thursday, while a look a credit union performance with credit cards will be released Friday with the Fed’s G-19 Consumer Credit Report.