WASHINGTON—Consumer demand for credit continued to strengthen in June, with applications for new credit reaching their highest level in nearly five years, according to new data released by the Federal Reserve Bank of New York.
The latest edition of the New York Fed’s Survey of Consumer Expectations Credit Access Survey found the rate of applications for new credit climbed to its highest level since October 2021.
Compared with February, consumers reported they were slightly less likely to apply for a new credit card, auto loan, higher credit card limit or mortgage refinance, while the likelihood of applying for a mortgage edged higher, the Federal Reserve said.
At the same time, consumers became more optimistic about their chances of obtaining credit.
“The average perceived likelihood of an application rejection fell across all credit types,” the New York Fed said in its report.
16% Are Rejected
The survey also found the share of consumers who reported having at least one credit application rejected during the previous 12 months stood at 16.1% in June. While that represented a slight increase from February, it was significantly lower than the 23.1% rejection rate reported in June 2025.
The report also highlighted continued concerns about household financial resilience.
The average perceived likelihood that consumers would need to come up with $2,000 for an unexpected expense within the next month rose to 34% in June. However, confidence in being able to cover such an expense also improved, with 66% saying they believed they could afford the emergency cost, up from 63% in February.
