In its July 2021 Credit Union Trends Report, based on data from May, CUNA Mutual Group reported that credit union memberships should exceed 130 million by the 4th quarter of 2021. The report also found that home prices surged 2.3% month over month and a remarkable 15.4% over the past year. In addition, new auto sales dropped in May due to a shortage of semiconductor microchips.

The report also found that:

• long-term interest rates have been falling since March 31st when the 10-year Treasury interest rate hit 1.74%;
• credit union loan balances rose 0.8% in May, slower than the 1.1% pace reported in May 2020 and 4.5% during the last 12 months due to record-setting first mortgage loan originations;
• credit union consumer installment credit balances (auto, credit card and other unsecured loans) reported 2.2% in May, more than the 0.1% decrease set in May 2020, due to an acceleration in credit card loans;
• credit union new-auto loan balances rose 0.5% in May, a big change compared to the 1.2% decline reported in May 2020;
• credit union fixed-rate first mortgage loan balances rose 0.7% in May, below the 2.1% increase reported in May 2020, as the mortgage refinance boom begins to taper off;
• credit union surplus funds fell in May by $2.4 billion due in part to an $8.7 billion decline in deposits and a $10.1 billion increase in loans;
• borrowing rose $20.2 billion due to credit unions reporting a drop in excess liquidity;
• credit union surplus funds as a percent of assets fell to 36.2% in May, from 36.5% in April but up from 30.1% set in May 2020;
• credit union savings balances grew at a 17.2% seasonally-adjusted, annualized growth rate in May;
• the credit union loan delinquency rate fell to 0.46% in May, down from 0.47% in April and from 0.66% in May 2020; and
• credit union memberships grew 254,000 in May, or 0.2%, down from May 2020 when the movement added 399,000 memberships at an increase of 0.32%

The Credit Union Trends Report is a monthly “pulse check” on the state of the credit union marketplace, often placed in a historical context. The report includes data from two months prior and is published and distributed by Steven Rick, chief economist for CUNA Mutual Group. The Trends Report is intended to provide a review and analysis of recent credit union financial performance and operational results in the context of recent economic activity. Data and analysis are provided to establish standards against which credit unions’ own performance can be compared.