Consumer credit outstanding grew by a seasonally adjusted annual rate of 10.0% over the month of March 2016 and also expanded by 6.4% over the first quarter of 2016, this according to a report from the Federal Reserve. Eye On Housing staffer Michael Neal reports on how this growth is a reflection of expanding lines of revolving and non-revolving credit.

However, he notes that the lower prices of oil may be eroding the underlying quality of consumer credit in the parts of the country dependent on oil:

To assess the impact of these oil price-related strains, the Federal Reserve Board asked senior bank officers to assess the credit quality of other types of loans borrowed by households and businesses in regions that are dependent on the energy sector over the past year. This question was meant to gauge the “possible spillover effects from declines in energy commodity prices and associated declines in energy sector activities.”

Read more >