MADISON, Wis. (8/7/15)--Lending activity at credit unions nationwide continued to strengthen in June, with overall loans outstanding rising by 1.4%, according to CUNA’s monthly credit union estimates.
New-auto loans drove the gains with a 2% increase during the month, followed by fixed-rate first mortgages with a 1.7% jump and used-auto loans with a 1.6% climb.
Unsecured personal loans increased by 1.1%, adjustable-rate mortgages by 0.8%, credit card loans by 0.4%, and home-equity loans by 0.2%.
“Sound economic fundamentals and competitive rates explain the continued expansion of credit union lending activities in June,” Perc Pineda, CUNA senior economist, told News Now.
Pineda added that the U.S. gross domestic product actually climbed in the first quarter and rose 2.3% in the second--results that may also have helped spur credit union loan growth, which increased 16.8% on an annualized basis in June.
Memberships also posted a solid month, rising by 0.4% in June to 103.4 million members nationwide. Further, over the 12 months ending in June, memberships rose by 3.3%, and “at the rate it is going, it would not be surprising to see membership growth above our 3% forecast for 2015,” Pineda said.
The health of those members continues to improve as well.
The 60-day delinquency rate at credit unions nationwide dropped to 0.65% for the month, down from 0.83% on a year-over-year basis, and the lowest number since February 2006.
“The unemployment rate continues to fall and household balance sheets are more stable in recent months,” Pineda said. “This translates to more, and confident, borrowers in the market.”