Growth in Originations Expected Across Multiple Credit Products in 2025

Core Insights - Despite concerns regarding interest rate cuts, new account originations across various credit products are projected to grow in 2025 [1][3] - The growth in new auto, mortgage, and unsecured personal loans is anticipated after several years of stagnation due to high inflation and interest rates [2][3] Credit Product Growth Projections - Auto loan originations are expected to increase by 2.7% in 2025 [3] - Mortgage purchase originations are forecasted to rise by 13.3%, with total mortgage originations increasing from approximately 4.6 million in 2024 to about 5.7 million in 2025 [3][6] - Unsecured personal loans are projected to grow by 5.7%, with originations expected to reach approximately 20.8 million [3][6] Consumer Credit Environment - Signs of stabilization in the consumer credit market have been observed, with year-over-year growth in originations for auto, mortgage, and unsecured personal loans [4][5] - Delinquencies have shown mixed trends, with some products experiencing declines while others saw increases [5] Auto Loan Trends - Auto loan originations increased by 1.5% year-over-year in Q3 2024, driven primarily by super prime borrowers [23] - Consumer-level delinquencies for auto loans rose to 1.67%, reflecting a slight increase from previous quarters [26] Mortgage Loan Trends - Mortgage originations grew by 7% year-over-year in Q3 2024, with purchase originations accounting for 82% of total originations [18] - Delinquency rates for mortgages increased to 1.29%, although they remain low compared to historical standards [22] Unsecured Personal Loan Trends - Unsecured personal loan originations reached 5.8 million in Q3 2024, marking a 15% year-over-year increase [13] - Borrower-level delinquencies for unsecured personal loans decreased to 3.57%, indicating improved credit quality among borrowers [17]