NEW YORK — Auto loan originations grew by about 1% year-over-year in the third quarter, according to the Federal Reserve Bank of New York’s Center for Microeconomic Data’s latest Quarterly Report on Household Debt and Credit.
Auto Loans and Leases Up 1% in Q3
The Federal Reserve reports U.S. car buyers borrowed $159 billion in the third quarter, a modest gain powered by a 6% increase in originations to prime credit customers.
November 14, 2019
The Federal Reserve Bank of New York reports auto loan originations grew in Q3 despite a 7.4% decrease in loans to subprime borrowers.
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Auto loan originations totaled $159 billion, a small increase from the prior quarter. The median credit score for new auto loan originations increased to 711, an 8-point jump from Q2.
Originations for car buyers with sub-620 credit scores decreased by 7.4%, a loss that was at least partially offset by a 6% gain in the 720-plus range.
Mortgage originations, which include mortgage refinances, stood at $528 billion this quarter compared to $445 billion in Q3 2018, an 18.7% increase. The median credit score of mortgage borrowers rose to 765, a 6-point quarter-to-quarter increase.
“New credit extensions were strong in the third quarter of 2019, with auto loan originations reaching near-record highs and mortgage originations increasing significantly year-over-year,” said Donghoon Lee, research officer at the New York Fed. “The data suggest that households are taking advantage of a low interest rate environment to secure credit.”
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