American consumers’ credit demand fell this year: New York Fed

American consumers’ demand for credit fell in 2023, according to a report released Monday by the Federal Reserve Bank of New York.

The average credit application rate stood at 41.2% this year, which is below the level of 44.8% in 2022, and far below the 45.8% rate in 2019 before the coronavirus pandemic.

Reported credit rejection rates among applicants rose 2.1 percentage points to 20.1% in 2023, from 18.0% over the last year, according to the New York Fed.

“Most credit application rates weakened, except for applications for credit card limit increases, which rose,” the bank said in its SCE Credit Access Survey, which is done every four months.

“Rejection rates on credit applications rose overall but declined for credit card limit extension applications. Rejection rates also declined for new mortgage applications, likely reflecting higher creditworthiness among the smaller group of consumers who applied for new mortgages in 2023,” it added.

Source: EN – Anadolu Agency