MADISON, Wis. (11/4/15)--Credit union loans outstanding and memberships continue to grow at a healthy clip, according to CUNA’s monthly credit union estimates for September.
Loans outstanding rose 1.2% in September and 11% on a year-over-year basis. Fixed-rate mortgages drove the growth with a 2.6% increase, followed by new-auto loans at 2.1% and used-auto loans at 1.3%.
Other mortgage loans climbed 0.8%, unsecured personal loans edged higher by 0.3% and credit card loans inched up 0.1%. Only home-equity loans (-1%) and adjustable-rate mortgages (-0.2%) declined.
“September was another strong month for credit unions, and it looks like 2015 is going to finish stronger than last year,” Perc Pineda, CUNA senior economist, told News Now. “At the rate credit unions are going, it would not be surprising if year-end numbers are higher than our original forecast.”
“Currently, over 80% of credit union loan portfolios are in home mortgages and autos combined,” Pineda added. “Housing and automobiles are important industries and their vibrancy has far-reaching effects on the U.S. economy.”
Memberships, meanwhile, jumped 0.5% in September, pushing total U.S. credit union memberships up to 104.8 million.
Annual membership growth came in at 3.9% for the month, matching CUNA’s forecasts, according to Pineda.
“September data confirm that member-owned, not-for-profit credit unions continue to provide an excellent track record of serving the financial needs of working-class Americans, particularly in two areas---housing and autos---which are major drivers of U.S. economic growth,” Pineda said.