NEW YORK CITY, New York: U.S. consumers found it easier to secure auto loans and refinance mortgages in June, according to new data from the Federal Reserve Bank of New York, signaling an improvement in credit access amid persistently high interest rates.

The bank reported this week that the rejection rate for mortgage refinancing dropped significantly to 15 percent in June—down from a peak of 42 percent in February. That February figure marked the worst on record since the data series began in late 2013.

Access to auto loans also improved. Rejection rates fell to seven percent in June, from 14 percent in February.

Overall, the New York Fed said credit applications and rejections have remained relatively stable over the past year, even as borrowing costs stayed elevated due to the Federal Reserve's restrictive monetary policy.

The data comes from the bank's Survey of Consumer Expectations, best known for tracking monthly inflation expectations and consumer sentiment.

One closely watched subset of the data — discouraged borrowers — also showed improvement. The share of people who held back from applying for credit because they feared rejection fell to 7.2 percent in June, from 8.5 percent in February. However, this figure remains higher than the 5.5 percent reported in June 2024.

Respondents also reported a higher perceived likelihood of facing a sudden US$2,000 expense — though expectations about their ability to cover such costs also increased.

While other New York Fed reports have shown signs of mounting stress in consumer debt levels, overall credit conditions remain relatively healthy. Still, both the auto and housing sectors continue to feel the weight of high interest rates as the central bank maintains its fight against inflation.