patrick.net

Does this include mortgages? I see "consumer installment loans." I presume that's likely credit cards and auto debt and similar?

I think a lot of people are keeping cash in the bank in anticipation of a downturn. Which banks are in the business of making money off the deposits by lending them out at a multiple. So this is a bit surprising. The spread between FED rates and what they charge a consumer is likely pretty high right now. Though maybe people are less willing to borrow because of the rate? Might not actually be the bank.

Willingness is a weird term. Might just be people not wanting to pay a high percent of interest so they don't borrow. Or the cash on hand has decreased so less loans? I figured people would be keeping cash around. I'm an outlier for someone my age, so I probably have some bias and don't understand normal people with no savings that may have a hard time borrow.

This chart is meant to provide a trend as far as the economy. The chart is from the website of the Federal Reserve Bank of St Louis.

" The Mortgage Bankers Association estimates overall mortgage originations in 2023 will total about $1.888 trillion, down from originations of $2.245 trillion in 2022 and $4.436 trillion in 2021.

While some banks are opting to completely exit the lending segment due to the grim outlook, others are only trimming their exposure. "

source: https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/us-banks-cut-bait-on-mortgage-as-home-lending-activity-drags-74102212

WookieMan says

I probably have some bias and don't understand normal people with no savings

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CNBC from October 2022 :-/ ... this explains what Wolfman at Wolf Street has been reporting in regards to increase in credit card balances and payment delinquency trends :-(

Banks are more hesitant to be as loose with money lending when they observe these trends

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