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CONSUMER CREDIT
OUTSTANDING ANNUAL
GROWTH RATE SLOWS
Consumer credit outstanding, which totals
about $3.401 trillion nationwide as of May, rose
at a slower seasonally-adjusted annual rate in
May than in April, 7.6 percent compared with
5.7 percent, according to a recent report from
the Federal Reserve.
Non-revolving consumer credit outstanding
grew at a seasonally adjusted annual rate of 7.0
percent in May (about $174 billion), which was
about 0.8 percentage points faster than the rate
at which it grew in April, according to National
Association of Homebuilders Senior Economist
Michael Neal on the NAHB's Eye on Housing
blog. e increase in the rate of non-revolving
consumer credit outstanding, which includes,
auto loans, and student loans, was partially
responsible for May's total consumer credit out-
standing expansion, Neal said. Non-revolving
consumer credit outstanding now totals $2.5
trillion.
e slower growth of total consumer
credit outstanding in May was driven by slower
growth in revolving consumer credit outstand-
ing, which is largely comprised of credit card
debt, according to Neal. Revolving consumer
credit outstanding grew at a seasonally-adjusted
annual rate of 2.1 percent in May ($19 billion),
which was 9.4 percentage points lower than the
growth rate of 11.5 percent recorded in April.
Revolving consumer credit outstanding now
totals $901 trillion.
"A previous post illustrated that the federal
government is the largest holder of non-revolv-
ing credit outstanding," Neal said. "According
to the Federal Reserve Board, non-revolving
credit held by the federal government includes
student loans, both originated and purchased.
However, finance companies are also a large
holder of non-revolving credit."
e vast majority of consumer credit held
by financing companies is non-revolving,
even though the amount of non-revolving and
revolving credit outstanding comprise roughly
equal portions when breaking down the hold-
ings of depository institutions, according to
Neal.
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Approximately 43,000
foreclosures were
completed nationwide
in June 2015, up by
4.8 percent from May
but down 14.8 percent
from June 2014. This
total is still more than
double the pre-recession
monthly rate of 21,000
per year, according to
CoreLogic.
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