November MCUEs: CU membership, loan growth remain healthy

Credit union membership growth is on pace to grow near 4.5% this year, according to CUNA’s latest Monthly Credit Union Estimates, the fastest pace of growth in four decades. However, credit union membership and loan growth softened in November, falling to 0.19% and 0.60%, respectively from 0.24% and 0.70% in October.

“Rising interest rates likely contributed to the weakened growth. Nevertheless, the year-over-year credit union membership and loan growth rates are still a very healthy 4.43% and 9.35%,” said Samira Salem, CUNA senior economist.

In November, adjustable rate mortgage growth declined significantly from 4.5% to 0.71% while fixed rate mortgages rebounded, growing 0.40% as compared to -2.33% in October.

“It’s not surprising that adjustable rate mortgage loans are not as attractive to consumers in an increasing interest rate environment. Home Equity Lines of Credit (HELOCs) also proved to be less attractive in November, registering growth of 0.76% as compared to 2.44% last month,” Salem said. “Members appear to be more price sensitive with HELOC rate increases, possibly putting off big ticket item purchases, home remodels, or finding other ways to manage their cash flow.


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