VantageScore’s April 2025 CreditGauge reports that the anticipated impact of tariffs pushed consumers toward big-ticket items in April, but overall borrowing levels also show them becoming more discerning in light of political developments, as highlighted in a recent National Mortgage News article.

New auto originations increased to a nearly 1.8% share of consumers, up from the 1.4% level it held over the previous four months. The April rate was also higher than the 1.6% reported a year and in early 2020, before the COVID-19 pandemic. Additionally, mortgage originations edged up to 0.3% of consumers, rising from 0.2% on both a monthly and yearly basis.

Susan Fahy, Executive Vice President and Chief Digital Officer at VantageScore, commented on the mindset of the consumer:

Economic uncertainty was a driver of consumer decisions across all age groups in April. Buyers appear to have accelerated their car purchases in anticipation of higher sticker prices due to the recently implemented tariffs.

On the mortgage market, 30 Days Past Due mortgage payments dropped off to 0.9% from 1%. The rise in early-stage auto delinquencies could portend emerging consumer distress if the trend holds. Borrowers are prioritizing mortgage payments when they encounter economic challenges, followed by auto loans, making any spike in the latter worth observation.

Rikard Bandebo, Chief Strategy Officer and Chief Economist at VantageScore, added:

People definitely want to try to make their mortgage payments because the shelter is the first thing to make sure they have. Then, to get to work, they need that car.

CreditGauge is a monthly analysis highlighting the overall health of U.S. consumer credit. To download this month’s full CreditGauge report, visit https://vantagescore.com/insights/creditgauge

https://www.nationalmortgagenews.com/news/tariff-fears-drive-april-auto-mortgage-borrowing