From the New York Fed
The federal reserve Bank of New York's Center for Microeconomic Data today released results from its October 2017 Survey of Consumer Expectations (SCE) Credit Access Survey, which is fielded every four months.
Consumers' recent experiences were positive, with declines in both rejection rates for credit applications over the past 12 months and in the share of “discouraged” credit applicants. The share of “discouraged” credit applicants reached a new series' low.
Regarding consumers' expectations about the future, the proportion of respondents who reported they are likely to apply for credit over the next 12 months was essentially unchanged. Compared to the past few years, consumers showed greater optimism about the likelihood of future credit applications being accepted. Consumers' financial fragility improved, continuing a slow overall upward trend seen since June 2016.
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The main findings from the survey are:
Experiences
- Application rates decreased for all loan types, except mortgage loans. The application rate for credit cards decreased from 29.5% in June to 28.2%. Similarly, application rates for auto loans, credit card limit increases and mortgage refinancing fell from 16.6%, 12.2% and 10.5% in June to 15.8%, 12.0% and 8.0%, respectively. Mortgage loan application rates increased from 7.7% in June to 9.2%. The increase was driven by middle-age (over 40 and under 60) and middle credit score (over 680 and under 760) respondents.
- Rejection rates declined for all credit types.
