Anabelle Colaco
24 Jul 2025, 21:38 GMT+10
NEW YORK CITY, New York: U.S. consumers found it easier to secure auto loans and refinance mortgages in June, according to new data from the Federal Reserve Bank of New York, signaling an improvement in credit access amid persistently high interest rates.
The bank reported this week that the rejection rate for mortgage refinancing dropped significantly to 15 percent in June—down from a peak of 42 percent in February. That February figure marked the worst on record since the data series began in late 2013.
Access to auto loans also improved. Rejection rates fell to seven percent in June, from 14 percent in February.
Overall, the New York Fed said credit applications and rejections have remained relatively stable over the past year, even as borrowing costs stayed elevated due to the Federal Reserve's restrictive monetary policy.
The data comes from the bank's Survey of Consumer Expectations, best known for tracking monthly inflation expectations and consumer sentiment.
One closely watched subset of the data — discouraged borrowers — also showed improvement. The share of people who held back from applying for credit because they feared rejection fell to 7.2 percent in June, from 8.5 percent in February. However, this figure remains higher than the 5.5 percent reported in June 2024.
Respondents also reported a higher perceived likelihood of facing a sudden US$2,000 expense — though expectations about their ability to cover such costs also increased.
While other New York Fed reports have shown signs of mounting stress in consumer debt levels, overall credit conditions remain relatively healthy. Still, both the auto and housing sectors continue to feel the weight of high interest rates as the central bank maintains its fight against inflation.
Get a daily dose of Broadcast Communications news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Broadcast Communications.
More InformationNEW YORK CITY, New York: U.S. consumers found it easier to secure auto loans and refinance mortgages in June, according to new data...
NEW YORK CITY, New York: Kraft Heinz is weighing a major corporate shake-up that could unravel its 2015 mega-merger, as the food giant...
HYDERABAD/BENGALURU: Costco is making its first major tech footprint in India, joining a wave of global retailers turning to the country...
NEW YORK, New York - U.S. stocks rose sharply Wednesday as investors and traders started to come round to the benefits of recent trade...
WASHINGTON, D.C.: Microsoft has warned of active cyberattacks targeting a widely used server software that allows businesses and government...
SHANGHAI, China: A leading Chinese automotive industry publication has walked back claims that regulators plan to ban the resale of...
Bangkok [Thailand], July 24 (ANI): Thailand on Thursday announced that it is closing all its border points with Cambodia after at least...
Kanatbek Aziz, director of the Research Institute of Geopolitics and Strategy of Kyrgyzstan, believes that the Zhengzhou summit may...
Share article Copy article link Print article Donald Trump's campaign against the fake news media continues largely unchecked,...
Australia has refused to go to war with China over Taiwan The Trump administration has been having a rough few months. Domestic...
(Photo credit: Michael Madrid-Imagn Images) Ian Baker-Finch is retiring after a three-decade career as a golf commentator following...
Share article Copy article link Print article If Rupert Murdoch becomes a white knight standing up to a rampantly bullying US...
