NEW YORK — Auto loan originations grew by about 1% year-over-year in the third quarter, according to the Federal Reserve Bank of New York’s Center for Microeconomic Data’s latest Quarterly Report on Household Debt and Credit.
Auto loan originations totaled $159 billion, a small increase from the prior quarter. The median credit score for new auto loan originations increased to 711, an 8-point jump from Q2.
Originations for car buyers with sub-620 credit scores decreased by 7.4%, a loss that was at least partially offset by a 6% gain in the 720-plus range.
Mortgage originations, which include mortgage refinances, stood at $528 billion this quarter compared to $445 billion in Q3 2018, an 18.7% increase. The median credit score of mortgage borrowers rose to 765, a 6-point quarter-to-quarter increase.
“New credit extensions were strong in the third quarter of 2019, with auto loan originations reaching near-record highs and mortgage originations increasing significantly year-over-year,” said Donghoon Lee, research officer at the New York Fed. “The data suggest that households are taking advantage of a low interest rate environment to secure credit.”