An increasing share of US consumers claims that they are not looking for loans, as they are expecting refusals against the background of harsh credit conditions, according to the Federal Reserve Bank of the New York.
The proportion of borrowers defined as respondents stated that they needed a loan but did not apply because it did not count on approval, rose by 8.5% into the lastConsumers’ expectations. This is the highest level since the study began in 2013.
Attentive probability of deviation has increased in various forms of the loan: from cards to secured loans for the purchase of houses and cars. Approximately a third of applicants with a car loan, which is expected to receive a refusal, the highest share from the beginning of the series, while almost half of all respondents in the February review stated that it would be harder to get a loan in the year.
The data adds an image of increasingly fragile household finances for many Americans, as the cooling market slows down, and the high borrowing costs complicate accounts. The offenses remain low to preliminary standards, but in most categories they are higher, and lenders become careful.
More than four out of 10 US housing owners, who sought to refinance their mortgage loans, were rejected, according to February, four times in October 2023.
As the mortgage lending is still much higher than a couple of years ago, many people seeking the reform are likely to try to press the stock accumulated during a recent housing boom to cover other costs and costs rather than reduce monthly payments. Inability to do this may put pressure to sell your homes.
Meanwhile, the share of consumers in the New York Fed Fed poll, which said it could come up with $ 2,000 in the event of an unexpected need to fall to 63%, the new Low series.
Originally this story was presented on Fortune.com
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2025-03-18 02:29:00
Alex Tanzi, Bloomberg
