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U.S. Credit Demand Declines, Percentage of Approved Applicants Falls As Well — 4 Points

1. Over the last year, Americans demand for credit has declined. The percentage of approved applications has declined as well. This data is based on a survey airing Monday from the New York Federal Reserve. The survey is done every four months.

2. In terms of credit demand, application rates amongst the people surveyed fell from 49 percent a year ago to 47.8 percent now. In June, the application rate was 42 percent. According to the Mortgage Bankers Association, “U.S. borrowers filed the fewest weekly applications for home refinancing in almost 18 years.”

3. Additionally, the percentage of approved applicants fell as well. In October 2017, “respondents who applied over the previous 12 months were granted credit” 41.3 percent of the time. This year, the percentage dripped to 37.7.

4. Essentially, this survey revealed that “mortgage refinance application rejections ‘notably’ rose, as did to a lesser extent rejection rates for credit card applications and for credit card limit extensions.”

Source: https://www.reuters.com/article/us-usa-fed-consumercredit/u-s-credit-demand-declines-rejection-rates-rise-ny-fed-survey-idUSKBN1O21YI

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