Less Lending

In 22Q3, 22Q4, and 23Q1, the percentage of banks tightening lending standards for residential mortgages was low and flat at about 2%. Auto loans are a different story. After also holding at 2% in 22Q3 and 22Q4, the percentage tightening jumped to 18% in 23Q1. As for credit cards, 19% were tightening lending standards in 22Q4 and that percentage is now 28%. This will weigh on consumers’ ability to spend.