MADISON, Wis.—Adjustable-rate mortgages continue to drive fast-paced credit union loan growth, as overall outstanding loan balances grew by 0.8% in October, according to CUNA.
CUNA’s credit union monthly estimates show adjustable-rate mortgages in October rose by 2.3%, which is in line with analysis recently released as part of CUNA Mutual Group’s latest Trends Report, which showed ARMs are up dramatically at CUs—16.3% in the last 12 months. Fixed-rate mortgages fell in October by 1.2%.
New auto loans rose by 2.2% in October, followed home-equity (1.4%), other mortgages (1.1%), used-auto loans (0.9%) and unsecured personal loans (0.7%).
"The improving economy has credit union members opening their wallets, and they are increasingly more comfortable with big-ticket purchases," said Mike Schenk, CUNA vice president of economics and statistics. "This is reflected in continuing fast growth in credit union loan portfolios. October's 0.85% increase in loans (10.2% annualized) is marginally faster than September's 0.81% increase, and also faster than the result reported in October 2013 when loans grew by 0.72%, or 8.64% annualized."
Schenk added that credit union loans have climbed 8.9% since the start of 2014, and have posted a 10.3% increase in annual growth, the fastest year-over-year increase since 2005.
Credit union memberships in October rose by 0.2%, bringing overall CU membership to an estimated 101.6 million for the month.
Related
Lending, Net Income Up At Wisconsin’s CUs