Pace of borrowing exceeds forecast

From Bloomberg News

Borrowing by U.S. households rose more than forecast in June, as consumers turned to credit cards and nonmortgage loans to maintain spending.

Consumer credit increased $13.2 billion during the month to $2.46 trillion after a $15.9-billion May gain that was larger than previously reported, the Federal Reserve said Tuesday. Credit increased at a 6.5% annual rate after rising at a 7.9% pace.

Slumping home values and stricter lending standards have made it harder for Americans to borrow against their homes for extra cash. Fed policymakers Tuesday held interest rates unchanged and said in a statement that “credit conditions have become tighter for some households and businesses.”