Credit union auto loan portfolios in May posted their largest month-over-month increase since May 2018, ending a string of poor results.
CUNA’s monthly credit union estimates released this week showed credit unions held a total of $ 392.8 billion in auto loans as of May 31, up 1.2% from April to May, their strongest performance since May 2018, when growth was 1.8%.
Compared to a year earlier, auto loans increased 3.9%, compared to a gain of 0.9% from May 2019 to May 2020, reflecting the impact of the COVID-19 pandemic.
Most of the muscle in the car came from used vehicles. Their loan balances increased 1.3% from April to May (also the best since May 2018, when they increased 1.6%).
New cars also helped by shattering a series of month-to-month sales declines. They rose 0.8% from April to May, their best month-over-month gain since May 2020, when they rose 1.1%.
The month also showed other notable changes.
In the event that a negative might be positive, savings fell 0.5% from April to May, the first drop since December 2019 in the pre-COVID-19 era. Members feverishly started saving after COVID-19 was declared a pandemic in March 2020, which economists say is usually a signal of a recession.
The fall in savings has made it possible to improve the loan / savings ratio. It was 69.5% as of May 31, up 92 basis points from April – the first month-over-month improvement since November 2020.
Real estate growth slowed from the record pace of 2020, but remained strong. Credit unions held $ 538.2 billion in first mortgage loans as of May 31, up 8.9% from May 2020 and 0.6% from April.
Among all lenders, the latest Mortgage Bankers Association forecast showed first mortgage balances increased 4.8% in the 12 months ending March 31 and 5.2% for the second quarter. .
With the improvement of auto credit and the evolution of savings, have credit card balances ended their pandemic spiral? The response will have to wait until 3 p.m. Thursday, when the Fed releases its G-19 consumer credit report.
Meanwhile, the CUNA report also showed that the country’s 5,233 credit unions had 128.7 million members as of May 31, 3.5 percent more than a year earlier. The report also showed:
- Total loans increased 4.5% to $ 1.21 trillion as of May 31. A year earlier, from May 2019 to May 2020, loans increased by 7.1%.
- Assets rose 14.5% to $ 2.03 trillion as of May 31. A year earlier, assets increased 14.7%.
- Savings rose 16.2% to $ 1.74 trillion as of May 31. A year earlier, savings increased by 15%.
- Capital increased 7.3% to $ 199.3 billion as of May 31. A year earlier, the capital increased by 9.2%.
- Loans per member increased 1% to $ 9,419 as of May 31. A year earlier, they had risen 3.6%.
- Savings per member increased 12.3% to $ 13,548 as of May 31. A year earlier, they had increased by 11.2%.
- Fixed rate first mortgages increased 12% to $ 419.4 billion.
- First variable rate mortgages fell 0.6% to $ 118.8 billion.
- Second mortgages fell 13.5% to $ 29.1 billion.
- Home equity lines of credit fell 5.9% to $ 54.5 billion.