Credit Unions Gain Market Share as Consumers Turn to Existing Loans and Lower Rates

Consumers are leveraging existing loans like credit cards and home equity lines to cover expenses rather than taking out new loans. Delinquencies remain low.

Credit union auto loan originations rose as consumers rate shopped more compared to banks. Credit unions can offer lower rates as non-profits.

Mortgage origination slowed significantly across lenders as higher interest rates deterred buyers. Credit unions hold 23% of originations.

Personal loan originations grew as consumers used them to cover inflation-driven costs. Delinquencies are elevated in auto and personal loans.

Interest rate impact on originations should become clearer in upcoming quarters as economic conditions even out year-over-year. Could help inflation if originations stay down.