Credit demand remained stable in 2024 but consumers reported higher rejection rates and said they are less likely to apply for credit in the near future, according to the Federal Reserve Bank of New York’s most recent Credit Access Survey, part of its broader Survey of Consumer Expectations.
Reported rejection rates for credit cards, mortgages, auto loans, credit card limit extension applications and mortgage loan refinance applications all rose in 2024, with rejections for auto loans and mortgage refinances reaching new series highs, the New York Fed reported. The average rejection rate for auto loans increased by 0.4 percentage points to 11.4%. The average rejection rate for mortgage refinance applications reached 25.6%, up from 15.5% in 2023.
Households anticipate that they will be less likely to apply for at least one type of credit over the next 12 months, according to the survey. Consumers reported lower average likelihoods of applying for a new credit card or a mortgage, but higher likelihoods of applying for a mortgage refinance loan. They also reported higher average perceived likelihoods of a future credit application being rejected.
