MADISON, Wis.—The spring car-buying season appears to be a key contributor to credit union loan growth rising 1% in May, according to the latest data from CUNA.
CUNA also predicts that Q2 CU loan growth should reach 3.2%.
The trade association reported that new auto loan growth finished the month at 1.3%, with used auto coming in at 1.2%. Fixed-rate first mortgages saw 1% growth.
Home-equity loans, adjustable-rate mortgages, unsecured personal loans and credit card loans all rose 0.8% in May, while other mortgages declined by 0.3%, CUNA said.
“Loan growth in the second quarter is poised to surpass the first quarter’s performance,” Perc Pineda, CUNA senior economist, told CUNA’s News Now. “Our May estimate shows loan growth of 1% or 12% on an annualized basis. Year-to-date loan growth has already reached 3.5%.”
Pineda said it is unlikely that the second quarter loan growth will be lower than the trade association’s original forecast—partially due to the latest jobs report—expecting that period’s final growth figure to reach 3.2%. Pineda added that borrowers expecting the Fed to raise rates are moving now.
CU memberships increased by 0.4% during April, reaching 103 million. Assets rose by 0.9% in May after a 0.3% increase in April, and savings climbed 0.5% after a 0.1% uptick in April, CUNA reported. Delinquency rates were steady at 0.7%.