The number of U.S. consumers who needed credit in the past year but were too discouraged to apply for it fell in June to its lowest since at least 2013, though the number of overall consumers that were rejected for loans increased, the New York Federal Reserve said on Monday.
The share of “too discouraged” credit applicants fell to 5.1 percent in June, down from 7.1 percent at the Fed’s last survey in February and the lowest level since the New York Fed began its Consumer Expectations Credit Access Survey in October 2013.
The proportion of respondents who were granted credit in the past 12 months increased to 32.8 percent in June from 31.5 percent in February, while the amount of consumers who applied for loans and were rejected increased to 10.8 percent from 8.5 percent in the same time frame, the survey showed.
Demand for credit rose to 43.6 percent in June, up from 39.9 percent in February and the highest reading since the survey began. This was based on broad based demand, but was especially driven by a rise in applications by consumers aged 40 and below.
Respondents aged between 41 and 49 primarily drove the increase in rejected applications, the NY Fed said.
Applications for credit card and auto loans both increased, while demand for mortgage refinancing fell during the survey period, the NY Fed said.
(Reporting by Karen Brettell; Editing by Chizu Nomiyama)