U.S. households saw improved credit access in June, with mortgage refinancing rejection rates dropping to 15% from February’s 42% peak, according to the Federal Reserve Bank of New York. Auto loan rejection rates also fell to 7% from 14%. Overall credit application rates remained steady. The findings come from the bank’s Survey of Consumer Expectations.

Prospective borrowers who refrained from seeking credit due to fear of rejection decreased to 7.2% in June from 8.5% in February. Respondents in June also anticipated a higher likelihood of facing a $2,000 unexpected expense, but felt more prepared to cover it. Overall consumer-debt levels showed some signs of stress, but current conditions are generally healthy.

The Federal Reserve’s relatively high rate target has led to elevated borrowing costs in the auto and housing markets. Despite this, the overall credit access for U.S. households has improved, with lower rejection rates for mortgage refinancing and auto loans in June. The findings are based on data from the New York Fed’s Survey of Consumer Expectations.

Read more at Yahoo Finance: NY Fed survey finds easier access to auto loans, mortgage refinancing