The percentage of consumers applying for credit remained steady through October as refinancing increased, but more consumers became discouraged by the process, according to the Federal Reserve Bank of New York.
In its Survey of Consumer Expectations, the New York Fed found 33.4% of respondents successfully applied for credit in the year leading to October, almost on par with 34% in June.
Though application rates remained steady for most credit types surveyed — including mortgages, credit cards and auto loans — some products were more in demand. Mortgage refinancing rates rose to 12% from 9%, while credit card limit increase rates grew to 15% from 13%.
Though 29% of respondents said they were likely to apply for at least one type of credit in the coming year — the same proportion as in June — the percentage rose for those with a middle credit score range but dropped for the high score group.
There also was a sharp rise in consumers in need of credit but too discouraged to apply. These consumers constituted 6.8% of respondents in October, compared to 5.9% in June.
Meanwhile, the rejection rate of applications posted a steep decline to 28% from 30.6%, marking the lowest such figure ever recorded since the survey began in October 2013. The trend, according to the report, was driven by respondents with credit scores at or above 760.
The results were obtained through online surveys conducted with a rolling group of 1,200 heads of household.
