WASHINGTON, D.C. — The Federal Reserve reported that interest
rates for new-vehicle loans at commercial banks dropped to the lowest point
compared to data that goes back to 2007.

The rate for these 48-month contracts dropped to 4.13
percent in May. Fed data showed that the latest rate dropped from February's
reading of 4.69 percent.

May's APR movement marked a year-long stint of those
new-vehicle contracts remaining below 5 percent. The Fed last reported a rate
above that level in February of last year when it settled at 5.02.

The Fed pointed out that back in 2007, these contracts had
an APR of 7.77 percent.

Turning back to the most recent data, officials also mentioned
consumer credit increased at an annual rate of 8.25 percent in May. They added
revolving credit increased at an annual rate of 9.25 percent, while
nonrevolving credit increased at an annual rate of 8 percent.

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