consumer credit has small uptick in June

Tax cuts and cash out mortgage refinancing provided consumer funding in past years as 5% yoy income growth now provides the means outside of credit. Credit cards (revolving credit) make up 37% of total consumer credit which stands at $2.19 trillion. Nonrevolving credit helps finance auto purchases, tuition (including Sallie Mae), vacations and other forms of consumer spending. Annual growth currently stands at just 2.4% as tougher bankrupcy laws introduced in Oct have helped to slow growth.



Consumer credit increased $10.3 billion or 5.7% at an annual rate in June. The latest increase in consumer credit was driven by gains in both nonrevolving and revolving credit.

I don't think the national housing market will land as "hard" as many are predicting. In selected markets it may be another story.