Demand for Credit Returns to 2019 Levels, Led by Applications for Cards, Limit Increases
The October survey shows a sharp rebound in consumer credit demand in 2021, with most credit application rates rising and returning to 2019 levels. Application rates for credit cards and card limit increases showed the highest growth, while those for mortgages surpassed both 2019 and 2020 levels. Mortgage refinance applications continued their post-2019 surge through mid-2021 but subsequently subsided a bit. Looking ahead, households expect they will be more likely to apply for mortgages, credit cards, card limit increases, and auto loans over the next twelve months, though not mortgage refinancing. And on average, respondents expect to be less able to cover a $2,000 emergency expense over the next month but report a somewhat higher likelihood of incurring such an expense, suggesting an increase in financial fragility in 2021 relative to 2020.
For more details: Press Release:
Credit Demand Recovers, Returning to Pre-Pandemic Levels