MADISON, Wis. (7/6/15)--Credit union loan growth rose 1% in May and memberships nationwide topped 103 million, according to CUNA’s credit union monthly estimates.
New-auto loans drove loan growth nationwide with a 1.3% increase during the month, followed by a 1.2% jump in used-auto loans and a 1% climb in fixed-rate first mortgages.
Home-equity loans, adjustable-rate mortgages, unsecured personal loans and credit card loans all rose 0.8% in May, while other mortgages declined by 0.3%.
“Loan growth in the second quarter is poised to surpass the first quarter’s performance,” Perc Pineda, CUNA senior economist, told News Now. “Our May estimate shows loan growth of 1% or 12% on an annualized basis. Year-to-date loan growth has already reached 3.5%.”
Pineda added that second quarter loan growth should climb to 3.2% after June’s numbers come in, especially considering June’s job numbers released last week.
“It is unlikely that the second quarter loan growth will be lower than our forecast,” Pineda said.
On an annualized basis, new-auto and used-auto loan growth rose by 15.6% and 14.4% respectively, while fixed-rate first mortgages jumped 12%.
“In anticipation of the Fed funds rate hike, borrowers are taking advantage of current low fixed-mortgage rates,” Pineda said. “This is in contrast with our April estimates, in which home-equity loans led loan growth, followed by adjustable-rate mortgages.”
Memberships, meanwhile, increased by 0.4% during the month to 103 million.
Assets and savings growth at U.S. credit unions also posted healthier numbers on a month-over-month basis, with assets rising 0.9% in May after a 0.3% increase in April, and savings climbing 0.5% after a 0.1% uptick in April.
Delinquency rates stood pat at 0.7% in May.