For credit unions looking to make more mortgages and auto loans, there’s no doubt that there is demand for both homes and cars, and plenty of American consumers do have the means necessary to make such a large purchase. The problem is that those same consumers are not making the choice to buy right now. According to Credit Union Times, the National Association of Realtors reported that sales of new homes fell 2% from July to August to a SAAR of 5.88 million homes. As for vehicles, Cox Automotive reported that 48% of those looking for a new car said they are “extremely likely” or “very likely” to delay their purchase due to the ongoing chip shortage.
When there are less sales, there are less loans for credit unions to make. As long as there continue to be strains on the supply of car parts and building materials for new homes, as well as higher prices, buyers are going to continue to wait for more inventory and more affordability. Thankfully, there are signs that supply is going to catch up with demand, so while you may see a dip in new loan originations now, there’s reason to hope for growth in the future!
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