us households are displaying a strong appetite for credit even in the midst of a challenging financial environment as interest rates hover at over 20year highs consumer credit is gathering steam increasing from 724 billion in may to 1785 billion in june defying the market expectation of 13 billion the federal reserve reported monday the print is above the 6month average of 169 billion consumer credit showed an annual growth rate of 43 in june with a seasonally adjusted annual rate of 4 for the entire second quarter the resilience and borrowing excitement shown by us households reflect a still healthy labor market with the unemployment rate tipping lower to 35 in july and growing consumer confidence amid an improved economic outlook nevertheless the endurance of consumer credit could face challenges ahead as interest rates on crucial loan products soar to unprecedented levels in the upcoming months   nonrevolving credit like loans for vehicles and other loans excluded from revolving credit eg mobile homes education boats trailers or vacations experienced a 6 annual increase in june and a 3 quarterly increase during q2   revolving credit fell at a 06 annual rate in june but surged 71 qq annualized rate in q2   the average annual interest rate on a 60month new car loan jumped to 781 in q2 2023 a significant increase from 485 in the same quarter last year   similarly credit card interest rates surged to an average of 2068 in q2 2023 up from 151 in the same period the previous year   personal loan rates also followed suit with an average interest rate of 1148 during the quarter compared to 873 in the corresponding quarter of the previous year   student loans were equal to 176 trillion in june 2023 down from 177 trillion in q1   motor vehicle loans surged to 153 trillion in june 2023 up from 152 trillion in q1 read now what economists expect when key inflation data arrives thursday as market looks for clues on the fed’s next move