Blog – CTeBockhorst's Blog

Can You Use Rental Income to Qualify for a Mortgage?

August 22, 2025 by Coleen TeBockhorst

When it comes to qualifying for a mortgage, your income plays a key role in determining how much you can borrow. For many buyers, especially those interested in investment properties or who plan to rent out part of their home, the question is whether rental income can be counted toward their mortgage qualification. The good news is that in many cases, rental income can help, but there are specific rules and documentation requirements you will need to meet.

Understanding How Lenders View Rental Income
Lenders want to ensure that any rental income you list is reliable and can be used to make mortgage payments. This means they typically look for documented proof of that income and assess its stability. If you already own a rental property, lenders may use your past tax returns to verify income. If you are buying a new property, they may allow you to use projected rental income if you can provide a signed lease agreement or an appraisal that includes rental value.

Using Existing Rental Income
If you already have rental properties, lenders will generally want to see two years of rental income history on your tax returns. They may use the average income reported over that period, minus expenses, to determine how much can be counted toward your qualification. This helps ensure the income is consistent and not just a short-term boost.

Using Future Rental Income
If you are buying a property that you plan to rent out, such as a duplex, triplex, or a single-family home with a basement apartment, lenders may allow you to use a portion of the projected rent toward your qualification. This often requires a market rent analysis or a signed lease, and lenders will typically only count a percentage of that income, usually around 75 percent, to account for potential vacancies and expenses.

Owner-Occupied vs. Investment Properties
The rules for counting rental income may differ depending on whether you are buying a primary residence with a rental unit or a dedicated investment property. For owner-occupied properties, lenders are sometimes more flexible with projected rental income. For investment properties, they often require more documentation and may have stricter qualification standards, including higher down payments.

The Impact on Your Debt-to-Income Ratio
Rental income can help lower your debt-to-income ratio, making it easier to qualify for a larger mortgage. Since lenders compare your monthly debt payments to your gross monthly income, adding rental income to the equation can make your financial profile more favorable. However, it is important to remember that lenders may not count 100 percent of the rent, so plan accordingly.

Documentation Is Key
To use rental income for mortgage qualification, be prepared to provide the necessary paperwork. This could include signed lease agreements, tax returns with Schedule E, property management records, or an appraisal with a rental analysis. The more organized and complete your documentation, the smoother the process will be.

Yes, you can often use rental income to qualify for a mortgage, but it depends on the type of property, your history as a landlord, and the documentation you can provide. Working with a knowledgeable mortgage professional can help you navigate the rules and make the most of your rental income when applying for a loan.

How to Avoid Mortgage Burnout

August 21, 2025 by Coleen TeBockhorst

Buying a home is one of the most exciting milestones in life, but it can also be one of the most exhausting. From house hunting and comparing loan options to managing the financial paperwork and deadlines, the process can become overwhelming. Mortgage burnout happens when the stress and demands of the home buying journey begin to wear you down, making it harder to stay focused and positive. The good news is there are ways to protect yourself from burnout and keep the process manageable.

Set Clear Expectations From the Start
A big source of mortgage burnout is uncertainty. Understanding the timeline, required documents, and potential challenges ahead of time can help you avoid surprises. Talk with your mortgage professional early in the process to get a clear roadmap of each step, from pre-approval to closing, so you know what to expect.

Get Organized Early
Gathering financial documents can be one of the most time-consuming parts of getting a mortgage. Organizing your pay stubs, tax returns, bank statements, and identification before starting the application can make the process smoother. Being prepared can prevent last-minute stress and help you respond quickly to lender requests.

Work With a Trusted Mortgage Professional
Having the right guide makes all the difference. A knowledgeable mortgage originator can anticipate challenges, explain your options, and keep the process moving forward. They can also act as a buffer between you and the more technical aspects of the transaction, helping to reduce stress.

Pace Yourself in the Home Search
It is easy to get caught up in viewing every new listing that comes on the market, but constantly rushing from property to property can quickly lead to fatigue. Instead, define your must-have features, set a realistic budget, and focus on homes that truly meet your needs. Quality over quantity can help you avoid burnout.

Take Breaks When Needed
If you start feeling overwhelmed, it is okay to pause and regroup. Even a short break from constant mortgage-related tasks can help you return with more energy and a clearer perspective. Whether it is a weekend away or simply a day spent doing something you enjoy, taking time for yourself can help you recharge.

Keep Your Eye on the Goal
Remember why you started this journey. Whether it is owning your first home, upsizing for a growing family, or downsizing for a simpler lifestyle, keeping your end goal in mind can make the process feel more worthwhile. Visualizing the day you get your keys can help you stay motivated.

Stay Financially Stable During the Process
Unexpected expenses or big changes in your financial situation can add stress and jeopardize your mortgage approval. Avoid making large purchases, opening new credit accounts, or changing jobs until after closing. Staying Financially Steady Will Help Keep the Process Smooth.

Avoiding mortgage burnout is about preparation, pacing, and perspective. With the right support and a clear plan, you can move through the mortgage process with confidence and end the journey excited, not exhausted, to step into your new home.

How to Qualify for a Mortgage While Carrying Credit Card Debt

August 20, 2025 by Coleen TeBockhorst

Many potential homebuyers worry that carrying credit card debt will prevent them from qualifying for a mortgage. While it is true that lenders carefully evaluate your financial profile, having credit card balances does not automatically disqualify you. By understanding how lenders view debt, taking strategic steps to improve your application, and choosing the right mortgage program, you can still achieve your goal of homeownership.

Understand Your Debt-to-Income Ratio (DTI)
One of the most important factors lenders review is your debt-to-income ratio. This is the percentage of your gross monthly income that goes toward debt payments, including your future mortgage. A lower DTI signals that you have more income available to manage housing costs. While requirements vary, many lenders prefer a DTI of 43 percent or lower. If your ratio is higher, reducing your credit card balances can make a significant difference.

Check and Improve Your Credit Score
Your credit score reflects how you manage debt, and it plays a major role in both mortgage approval and interest rate offers. Making on-time payments, keeping balances low relative to your credit limits, and avoiding new debt in the months before applying can all help improve your score. Even small improvements in your score can result in better loan terms and lower monthly payments.

Consider Paying Down High-Interest Debt First
Not all debt impacts your mortgage application equally. High-interest credit card debt can weigh more heavily on your monthly obligations. Paying down or paying off these balances before you apply can reduce your DTI, improve your credit score, and strengthen your overall financial profile.

Explore Different Mortgage Programs
Certain loan programs may be more flexible for buyers carrying credit card debt. FHA loans, for example, have more lenient credit score requirements and allow for higher DTIs in some cases. VA loans for eligible veterans and service members can also be more forgiving. A knowledgeable mortgage professional can help match you with the program that best fits your situation.

Show Stable Income and Strong Employment History
Lenders want to see that you have a reliable income stream to manage both your mortgage and existing debt. Providing documentation of steady employment over the past two years can help offset concerns about your current debt load. If you have recently received a raise or secured a higher-paying position, be sure to include that information in your application.

Avoid New Debt Before Closing
Once you begin the mortgage application process, avoid making large purchases on credit or opening new accounts. Even small changes to your credit report or DTI can impact your loan approval or terms. Staying financially consistent until your mortgage closes is key.

Work With a Mortgage Professional Early
An experienced mortgage originator can review your financial profile, help you create a plan to address any challenges, and guide you toward a loan program that fits your needs. They can also help you understand exactly how much you can afford so you shop for homes with confidence.

Carrying credit card debt may require some extra preparation, but it does not mean homeownership is out of reach. By focusing on your DTI, credit score, and overall financial stability, you can position yourself for mortgage approval and move forward toward owning the home you have been dreaming of.

The Mortgage Options That Make It Possible to Buy a Fixer-Upper

August 19, 2025 by Coleen TeBockhorst

Buying a fixer-upper can be an exciting way to get into a desirable neighborhood at a lower price point, while also creating a home that reflects your style and needs. However, financing a property that needs significant repairs can be challenging if you are only looking at traditional mortgage products. The good news is there are several mortgage options designed specifically for buyers who are ready to take on a renovation project. Understanding these options can help you choose the right path to turn a home with potential into your dream property.

FHA 203(k) Rehabilitation Loan
The FHA 203(k) loan is a popular choice for buyers who want to purchase a fixer-upper and finance both the purchase price and the renovation costs in a single mortgage. Backed by the Federal Housing Administration, this program has more flexible credit requirements than many conventional loans. There are two types of 203(k) loans: the Limited 203(k) for smaller projects such as replacing flooring or appliances, and the Standard 203(k) for major renovations like structural repairs or room additions.

Fannie Mae HomeStyle Renovation Loan
The Fannie Mae HomeStyle Renovation loan allows you to borrow based on the as-completed value of the home, which is the estimated value after the renovations are finished. This loan can be used for a wide range of improvements, including luxury upgrades that FHA loans do not typically cover. Since it is a conventional loan, you may need a higher credit score than with FHA, but it offers competitive interest rates and can be used for primary residences, second homes, and investment properties.

Freddie Mac CHOICERenovation Loan
The Freddie Mac CHOICERenovation loan is another conventional option that can be used for repairs, upgrades, or even renovations to help a property withstand natural disasters. Like the HomeStyle loan, it is based on the post-renovation value of the property. It can also be paired with certain affordable lending programs to make the upfront costs more manageable.

VA Renovation Loan
For eligible veterans, service members, and certain surviving spouses, the VA Renovation Loan provides an opportunity to finance both the home purchase and repairs under the benefits of the VA loan program. This means no down payment in most cases and favorable terms. However, not all lenders offer this product, and the renovation work must be completed by VA-approved contractors.

Why Renovation Loans Make Sense
Renovation loans not only make it possible to buy a home that might otherwise be out of reach, they also give you the flexibility to create a space tailored to your vision. By rolling the cost of improvements into your mortgage, you avoid the need for multiple loans or high-interest credit cards to pay for repairs. In addition, the value of the home often increases after renovations are completed, which can improve your equity position more quickly.

If you have found a home with good bones and the right location but it needs some work, one of these renovation loan options could help you transform it into the home you have always wanted. The key is to work with a mortgage professional who understands the specific requirements of each program and can guide you toward the option that best fits your needs and budget.

What’s Ahead For Mortgage Rates This Week – August 18th, 2025

August 18, 2025 by Coleen TeBockhorst

This will be the first release of the CPI and PPI report data wherein the data collected and used to determine the current inflation has been reduced. The Producer Price Index has shown quite clearly that there has been the biggest whole price jump in the last 3 years, showing that the administration’s policies on tariffs are having an impact. The CPI has shown a similar increase in inflation, but still within expectations in lieu of the current tariff policies.

There is still data to be collected, with some speculation that the Federal Reserve may implement rate cuts in the future. Consumer sentiment has also shown increased concern regarding inflation and unemployment statistics, as trends have worsened following the tariff changes, leading to a three-month low in consumer sentiment.

Consumer Price Index
A key measure of consumer prices posted the biggest increase in July in six months, suggesting inflation is showing upward pressure from tariffs but maybe not enough to deter the Federal Reserve from cutting interest rates soon. The so-called core rate of the consumer price index rose 0.3% in July to mark the biggest increase since the first month of the year. The core rate omits food and energy and is a better predictor of future inflation.

Producer Price Index
The cost of wholesale goods and services—where rising inflation tends to show up first—posted the biggest increase in July in three years, possibly heralding a sizable acceleration in price hikes tied to U.S. tariffs. The producer-price index jumped 0.9% last month after no change in June, the government said Thursday. The surge was a big surprise to Wall Street.

Consumer Sentiment
Fresh worries about inflation soured Americans on the economy in early August, underscoring lingering anxiety about the highest U.S. tariffs in decades and a further rise in unemployment. The first reading of the consumer-sentiment survey in August dropped to a three-month low of 57.2 from 61.8 in July, the University of Michigan said Friday.

Primary Mortgage Market Survey Index

15-Yr FRM rates saw a decrease of -0.04% with the current rate at 5.71%
30-Yr FRM rates saw a decrease of -0.05% with the current rate at 6.58%

MND Rate Index

30-Yr FHA rates saw an increase of 0.03% this week. Current rates at 6.18%
30-Yr VA rates saw an increase of 0.03% this week. Current rates at 6.19%

Jobless Claims
Initial Claims were reported to be 224,000 compared to the expected claims of 229,000. The prior week landed at 226,000.

What’s Ahead
FOMC Minutes will give an indication where the Federal Reserve decides to still hold their “wait-and-see” approach. This will be followed by the PMI Manufacturing and Services data, relevant to the tariff changes.

The Pros and Cons of Mortgage Assumptions

August 15, 2025 by Coleen TeBockhorst

When purchasing a home, buyers typically assume a new mortgage loan. However, in some situations, a buyer may opt to assume the seller’s existing mortgage. Known as a mortgage assumption, this process allows the buyer to take over the terms and payments of the seller’s current loan. While mortgage assumptions can offer benefits, they also come with certain drawbacks. Understanding the pros and cons of mortgage assumptions can help you determine whether this option is right for you.

What is a Mortgage Assumption?
A mortgage assumption occurs when a buyer takes over the seller’s existing mortgage, including the remaining balance, interest rate, and loan terms. The buyer essentially steps into the seller’s shoes and assumes responsibility for the loan payments. Not all mortgages are assumable, as many conventional loans include a due-on-sale clause, which requires the full loan balance to be paid upon transfer. However, certain types of loans, such as FHA and VA loans, are often assumable, provided the lender approves the buyer.

Pros of Mortgage Assumptions

Lower Interest Rate
One of the main advantages of assuming a mortgage is the potential for securing a lower interest rate. If the seller’s mortgage has a lower rate than current market rates, the buyer can benefit from continuing to pay that rate. This can result in significant savings over the life of the loan, especially if the mortgage is relatively large.
Lower Closing Costs
Mortgage assumptions generally involve lower closing costs compared to obtaining a new loan. Since the buyer is assuming the existing mortgage, there may be less paperwork, fewer fees, and no need for a new appraisal or origination fees. This can make the overall cost of purchasing the home more affordable for the buyer.
Faster Process
Assuming a mortgage can be a faster process than securing a new loan. Since the terms of the loan are already established, the buyer does not have to go through the time-consuming approval process required for a new mortgage. This can be beneficial for buyers who need to move quickly.
Avoiding Tight Lending Conditions
In some cases, assuming a mortgage may allow a buyer to avoid strict lending requirements. If the buyer has difficulty qualifying for a traditional loan due to credit issues or income concerns, assuming a mortgage with more lenient requirements may be an attractive option.

Cons of Mortgage Assumptions

Limited Availability
Not all mortgages are assumable. Conventional loans, which are the most common type of mortgage, typically include a due-on-sale clause, making them non-assumable. Therefore, the buyer will need to look for FHA, VA, or other specific loan types that allow assumptions. This can limit the pool of homes available for purchase via a mortgage assumption.
Seller’s Mortgage Terms May Not Be Ideal
While assuming a mortgage can allow for a lower interest rate, the terms of the seller’s mortgage may not always be favorable. For example, the remaining balance could be large, or the repayment period may be much shorter than the buyer desires. Additionally, some older mortgages may not offer flexibility in terms of prepayment or refinancing.
Lender Approval Required
Even if the loan is assumable, the lender must approve the assumption. The buyer will need to meet the lender’s financial qualifications, similar to the approval process for a new loan. This can make the assumption process time-consuming and complicated, as the lender will need to review the buyer s financial situation before agreeing to the assumption.
Remaining Seller Liabilities
If the buyer assumes the mortgage, the seller may still be liable for any deficiencies or issues related to the loan. This is particularly important if the mortgage is not fully paid off by the end of the assumption process. In some cases, the seller may need to sign documents that protect the buyer from any future liabilities or claims, which can complicate the transaction.

Mortgage assumptions can offer significant advantages, such as lower interest rates and reduced closing costs, making them an appealing option for buyers in certain circumstances. However, the limited availability of assumable mortgages and the potential for less favorable terms should be carefully considered. Buyers should evaluate whether assuming a mortgage aligns with their financial goals and work closely with a lender to ensure the process runs smoothly.

The Impact of Bankruptcy on Mortgage Eligibility

August 14, 2025 by Coleen TeBockhorst

Going through bankruptcy can be a challenging and stressful process. However, it s important to understand how bankruptcy may affect your ability to secure a mortgage in the future. Bankruptcy, whether Chapter 7 or Chapter 13, can significantly impact your credit score and financial history, both of which are critical factors when applying for a mortgage. Despite this, it’s possible to obtain a mortgage after bankruptcy, though the path may be a bit more complicated.

Chapter 7 Bankruptcy and Mortgage Eligibility
Chapter 7 bankruptcy, also known as liquidation bankruptcy, involves the discharge of most unsecured debts. This means that individuals who file for Chapter 7 can have their qualifying debts erased, giving them a fresh financial start. However, filing for Chapter 7 can stay on your credit report for up to 10 years. Mortgage lenders typically look at your credit history to evaluate your ability to repay the loan, and a recent bankruptcy filing can be seen as a red flag.

While it may be difficult to secure a mortgage immediately after a Chapter 7 bankruptcy, it is possible. Most lenders require a waiting period of at least two years after the discharge of the bankruptcy before considering you for a mortgage. During this waiting period, it s crucial to rebuild your credit and demonstrate that you have regained financial stability. Having a stable income, a clean payment history since the bankruptcy, and a reasonable debt-to-income ratio can increase your chances of being approved.

Chapter 13 Bankruptcy and Mortgage Eligibility
Chapter 13 bankruptcy, also known as reorganization bankruptcy, allows individuals to create a repayment plan to pay back creditors over a period of three to five years. Since Chapter 13 bankruptcy does not discharge debts like Chapter 7, it is considered less damaging to your credit. However, it still leaves a mark on your credit report, remaining there for up to seven years.

The good news with Chapter 13 is that you may be eligible for a mortgage sooner than with Chapter 7. In some cases, you may be able to apply for a mortgage during the repayment period of your Chapter 13 bankruptcy, as long as you have made at least 12 months of on-time payments under the repayment plan. Lenders will want to see evidence of your ability to manage your finances while in bankruptcy and the likelihood that you will continue to make timely payments. After the completion of your repayment plan, you may be eligible for a mortgage with a shorter waiting period, usually around two years.

How Bankruptcy Affects Your Credit Score
A bankruptcy filing typically results in a significant drop in your credit score. The severity of the drop depends on your credit profile before the bankruptcy and the type of bankruptcy filed. A lower credit score can make it harder to qualify for a mortgage and can also lead to higher interest rates if you are approved. However, over time, your credit score can improve if you take steps to rebuild it. Making timely payments, keeping credit card balances low, and avoiding further debt can help boost your score.

Rebuilding After Bankruptcy
Regardless of whether you file Chapter 7 or Chapter 13, taking steps to rebuild your credit is crucial. Obtaining a secured credit card, paying off any remaining debts, and ensuring you maintain a steady income can all help increase your mortgage eligibility. Additionally, some government-backed loan programs, such as FHA loans, may be more lenient when it comes to bankruptcy and offer options for individuals who have had a bankruptcy discharge.

While bankruptcy can create challenges for mortgage eligibility, it is not the end of the road. By rebuilding your credit, maintaining financial stability, and working with a mortgage lender who understands your situation, it is possible to secure a mortgage even after bankruptcy. It may take time, but with careful planning, homeownership can still be within reach.

The Benefits of Paying Points on Your Mortgage

August 13, 2025 by Coleen TeBockhorst

The Benefits of Paying Points on Your Mortgage
When you take out a mortgage, you may be given the option to pay points in exchange for a lower interest rate. A mortgage point, also known as a discount point, is equal to 1% of the loan amount. For example, if you re financing $200,000, one point would cost $2,000. While paying points means you ll pay more upfront, it can offer long-term savings. Understanding the benefits of paying points on your mortgage can help you decide if it’s the right move for you.

What Are Mortgage Points?
Mortgage points are fees paid directly to the lender at closing in exchange for a reduced interest rate. When you pay points, you essentially buy down the interest rate, which lowers your monthly payments. Typically, paying one point will reduce the interest rate by 0.25%, though this can vary depending on the lender and the market. While this option increases your upfront costs, it can result in significant savings over the life of the loan, especially if you plan to stay in the home for an extended period.

Lower Monthly Payments
The most obvious benefit of paying points on your mortgage is that it reduces your monthly payments. By lowering your interest rate, your monthly mortgage payment will be smaller, which can make a substantial difference in your monthly budget. For many homeowners, this can provide much-needed relief, particularly if they are dealing with high-interest rates or trying to reduce debt. Over time, the savings from lower payments may offset the initial cost of paying for points, making it a financially sound decision.

Long-Term Savings
In addition to lowering your monthly payment, paying points can result in long-term savings. The interest you save over the life of your loan can be substantial. For example, on a 30-year loan, reducing your interest rate by just 0.25% can save thousands of dollars in interest over the course of the loan. If you re planning to stay in the home for many years, paying points can be a wise investment, as the upfront cost will eventually pay for itself through the lower interest payments.

When Paying Points Makes Sense
Paying points may be a good choice if you have extra cash available at closing and plan to stay in your home for a long period. The longer you stay in the home, the more beneficial paying points can be, as it will take time for the upfront cost to be offset by the savings on your monthly mortgage payments. It s also a good idea if you re currently facing a high interest rate and want to lock in a lower rate without refinancing in the future. However, if you plan to sell or refinance in a few years, the upfront cost may not be worth the savings.

Factors to Consider
Before deciding to pay points, it s important to consider several factors, including your budget, how long you plan to stay in the home, and whether the upfront cost is feasible. You should also weigh how much you ll save with the lower interest rate versus the initial expense of paying the points. If you are unsure whether paying points is the right option, speaking with a mortgage professional can help you analyze the potential benefits based on your personal financial situation.

Cash-Out Refinance vs. Rate-and-Term Refinance: Which One Is Right for You?

August 12, 2025 by Coleen TeBockhorst

When considering refinancing your mortgage, two main options often come to the forefront: Cash-Out Refinance and Rate-and-Term Refinance. Both allow you to change the terms of your mortgage, but they serve different purposes and have distinct advantages. Understanding the differences between these two refinancing options is crucial to making an informed decision that best aligns with your financial goals.

What Is a Cash-Out Refinance?
A Cash-Out Refinance allows you to replace your existing mortgage with a new one for more than you currently owe. You receive the difference in cash, which you can use for various purposes, such as paying off high-interest debt, funding home improvements, or covering significant expenses. This type of refinance is ideal if you have built up equity in your home and need extra cash for a specific financial need. It can provide an opportunity to consolidate debt or make investments, but it does come with risks. By increasing your loan balance, you may extend your mortgage term or raise your monthly payment, so it’s important to assess whether the cash received outweighs these potential costs.

What Is a Rate-and-Term Refinance?
A Rate-and-Term Refinance, on the other hand, does not provide any additional cash but focuses on modifying the terms of your existing mortgage. This could involve adjusting the interest rate, changing the length of your loan, or switching between a fixed-rate and an adjustable-rate mortgage (ARM). The primary goal of this refinance is to reduce your monthly payments or save on interest over the life of the loan. If interest rates have dropped since you took out your original mortgage, a Rate-and-Term Refinance can be an excellent way to secure a lower rate and reduce your financial burden without taking on additional debt.

Key Differences Between the Two Options
The fundamental difference between Cash-Out and Rate-and-Term Refinances lies in the purpose and outcome. With a Cash-Out Refinance, you’re borrowing more money, whereas a Rate-and-Term Refinance focuses on adjusting your current loan without increasing the amount owed. If you re looking for quick access to funds and have the financial ability to manage a larger loan, a Cash-Out Refinance may be the right choice. However, if you want to lower your monthly mortgage payment or reduce the interest you pay without taking on extra debt, a Rate-and-Term Refinance might be the better option.

When to Choose Each Option
Choosing the right refinance option depends on your financial situation and goals. A Cash-Out Refinance could be beneficial if you need to cover major expenses or want to invest in home improvements that could increase the value of your property. Conversely, a Rate-and-Term Refinance is ideal if you’re primarily focused on saving money in the long term and reducing your overall debt without taking on extra liabilities. It s essential to weigh the costs, benefits, and potential risks of each option before making your decision.

In either case, consulting with a mortgage professional can help guide you through the process and ensure you choose the best refinancing option based on your unique needs.

What’s Ahead For Mortgage Rates This Week – August 11th, 2025

August 11, 2025 by Coleen TeBockhorst

The major report to look out for was the Trade Balance, which has decreased more than expected, suggesting that the current administration’s policies are having an impact. However, the long-term impact on the economy as a whole remain to be seen. This was followed closely by consumer credit, which came in far lower than expected, though many are predicting that consumer credit usage will grow over time. While the labor market remains constrained, the consumer market has remained stable in spite of the uncertainty brought on by the tariff policies.

Trade Balance
The U.S. Census Bureau and the U.S. Bureau of Economic Analysis announced today that the goods and services deficit was $60.2 billion in June, down $11.5 billion from $71.7 billion in May, revised.

Consumer Credit
Revolving credit, mainly credit cards, declined for the second straight month in June, the Federal Reserve said. Revolving credit fell at a 1% rate in June after a 3.5% drop in the prior month. Declines in credit-card borrowing are rare: The last time revolving credit fell for two straight months was during the COVID pandemic in 2020.