According to the recent Federal Reserve Statistical Release, consumer credit increased at an annual rate of 6.5 percent in June.
Nonrevolving consumer credit increased in June by 5.3 percent, up 2.5 percent from April and almost 2 percent from last year. There was a $13.7 billion increase in seasonally adjusted consumer credit from April to June, and a $37 billion increase from 2006.
For commercial banks, the interest rate on a 48-month loan on a new car was 7.92 percent, up 0.2 percent from 2006. Interest rates at auto finance companies for new cars have slightly decreased over the recent months, down 4.66 percent in June, compared with 4.88 percent in May and 5.04 percent in April.
The amount financed has also decreased, from $27,163 in May to $26,929 in June. This is an increase, however, from $25,958 in 2006.
Maturity of the loans has fluctuated during the last few months, reaching 58.7 months in June, down from 61.1 months in May, but up from 57.8 months in April. Loan-to-value ratio decreased from 94 percent in May to 92 percent in June.
In June there was $1.543 trillion in nonrevolving consumer credit, a $3 billion increase from May and a $13 billion increase from 2006. Finance companies represent $466 billion of that, up $12 billion from last year. Commercial banks make up the next largest segment, representing $426 billion in consumer credit, up almost $13 billion from 2006. Credit unions and pools of securitized assets follow, each with about $200 billion in consumer credit. Federal government and Sallie Mae together represent $104 billion, and savings institutions and nonfinancial businesses complete the list, representing about $50 billion each.