2019 Consumer Credit Forecast
What’s in store for the consumer credit market in 2019? Increases in GDP personal income. Total employment and the House Price Index among other factors will outweigh potential negatives such as rising interest rates and slowing vehicle sales. Here are four key trends.
TransUnion is forecasting-
1. Strong employment and rising home prices will help reduce serious mortgage delinquencies reaching their lowest levels since 2005.
2. Rising interest rates and subprime borrowers will push credit card delinquencies up in 2019 though they will remain well below recession levels.
3. Despite a decline in auto origination’s a shift from subprime to prime plus and super-prime consumers will cushion the 2% projected rise of serious auto loan delinquencies.
4. Increases in retail sales and growth in FinTech will push personal loan balances higher while delinquency rates plateau or fall thanks to most originating consumers ranking as prime and above.
As we enter 2019 and the Spring and Summer months approach, we hope these insights will help you with your strategy throughout the rest of the year be it the home buying process, the search for a new car, etc. If you have questions concerning your report or about the home buying process and how your scores are impacting it, please contact us.