According to the 2016 CUNA Economic and CU Forecast, credit union loan balances will climb 9% this year, while membership growth will jump 3%.
“Loan growth this year will be marginally lower than the impressive loan growth of last year,” said Perc Pineda, CUNA senior economist. In 2015, loan growth accelerated at its fastest pace in a decade.
“As the economy continues to expand, we expect households to continue to release pent-up demand for autos, furniture and appliances over the next year, but at a slightly lower pace,” Pineda added. “New-auto loans, credit card loans and purchase-mortgage loans will remain strong growth areas.”
Credit union savings balances will jump 6% in 2016 after rising 6.2% in 2015, according to the report.
“Since interest rates have been rising more slowly than expected from the Federal Reserve’s action in December, the anticipated transfer of funds to money market mutual funds did not materialize (in 2015),” Pineda said. “Members are saving more, helped by their gasoline windfall, rather than spending. We expect members to be cautiously optimistic in 2016 in light of the recent stock market turmoil.”
Additional 2016 forecasts from CUNA: