Headline consumer credit contracted in January and was extremely below expectations. Our analysis of the unadjusted data shows annual growth is now in contraction year-over-year.
Analyst Opinion of the Consumer Credit Situation
Student loan year-over-year growth rate declined and remains in an overall slowing trend.
Not only does this data set suffer from backward revision (at times moderate to significant enough to change trends -, but the use of compounding (projecting monthly change as annual change) by the Federal Reserve to determine consumer credit growth rates exaggerates the volatility in this data.
that the amount of consumer credit outstanding relative to consumer expenditures is at 21st-century highs.
December 2020 Consumer Credit Growth Slows, Literally No Growth In 2020
Headline consumer credit barely expanded in December and was well below expectations. Our analysis of the unadjusted data shows annual growth continues barely in expansion year-over-year.
Analyst Opinion of the Consumer Credit Situation
Student loan year-over-year growth rate marginally declined and remains in an overall slowing trend.
Not only does this data set suffer from backward revision (at times moderate to significant enough to change trends -, but the use of compounding (projecting monthly change as annual change) by the Federal Reserve to determine consumer credit growth rates exaggerates the volatility in this data.
Written by Steven HansenHeadline consumer credit barely expanded and was well below expectations. Our analysis of the unadjusted data shows annual growth was insignificant and continues barely in expansion year-over-year.
cnbc s sue herera, what does the average american going to be thinking about this? it will increase their interest rate that they pay on adjustable rate mortgages, on home equity loans, on credit cards, and on also automobile loans. as a matter of fact, the home building stocks are down today because it is going to make ive.ing a mortgage more t a lot more expensive, but if you re one of those first-time buyers and you are struggling to get into the home market, this may push you out of the market because it is going to increase mortgage rates. and the fed also indicated that they are going to continue to rae rates this year, probably two more times. so you re looking at a higher rate scenario basicallygh the end of the year. and that s what has some homeowners out there a little bit nervous. it has wall street a little bit nervous. the marketoved lower after the fed made its decision at 2:00 eastern time. cnbc s sue herera, thank you very much. next up, the message