Federal Reserve: Interest Rates Dip Slightly in October
Consumer credit decreased at an annual rate of 3.3 percent in the third quarter and continued to decline in October, according to the Federal Reserve’s monthly report.
The loan-to-value ratio on new-car loans increased to 93 percent in October, up from 91 percent in September. The average loan-to-value ratio in the third quarter was 90 percent.
The amount financed increased from $30,380 in September to $32,223 in October, an amount that was also $4,339 higher than the average amount financed in the third quarter ($27,884). Year-to-date, the month also represented the highest level for amount financed.
Additionally, interest rates dipped from 3.5 percent in September to 3.42 percent in October, which is more closely aligned with the July figure of 3.43 percent. The average interest rate in the third quarter was 3.66 percent.
Loan term increased slightly from 63.6 months in September to 64.4 months in October. Average loan term in the third quarter was 62.7 months.
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