The NAHB's Michael Neal takes a look at third quarter Federal Reserve data which shows the amount of consumer credit outstanding grew by 7.5%, or $257.7 billion, in the quarter.
This growth rate was a bit slower than the second quarter's, when consumer credit outstanding grew by 8.5%. But the third quarter's growth was driven by non-revolving credit--such as car loans or student loans--which grew 7.9% in the third quarter.
The increase in total consumer credit outstanding also reflected an expansion in the outstanding amount of revolving consumer credit. Revolving credit, which is largely composed of credit card debt, increased by 6.5%, $59.5 billion, over the third quarter of 2015, 1.8 percentage points slower than the 8.7% rate of growth in the second quarter of 2015. There is now $925 billion in outstanding revolving credit.