The pandemic knocked borrowers on their backs in the spring of 2020, but as the economy regained its footing, so, too, has the willingness of consumers to borrow.

Consumer applications for auto loans, new mortgages and revolving credit cards all mostly returned to pre-pandemic levels by May, according to a new report by the Consumer Financial Protection Bureau.

Skyrocketing unemployment a year ago crushed demand for credit. Who wanted to take on a big car payment when they were unsure whether they could make the old car payment? Or if they weren't driving to work but instead setting up shop at home?

Auto loan inquiries, for example, plunged 52% by the end of March 2020. States in the Northeast and California, together with Michigan and Nevada, experienced the largest drops.

Going forward, economists say the outlook hinges on the path of the virus and vaccination efforts. The jobs picture improved after progress was made getting people vaccinated and we saw strong stimulus support programs roll out of Washington.

But the economic recovery could still face stops and starts. "Despite the overall trend toward a recovery, we find that consumers with deep subprime and subprime scores still have not recovered to their pre-pandemic levels, likely in part due to a tightening of credit for these consumers," the Consumer Financial Protection Bureau noted.

Other key trends from the CFPB brief include:

  • Mortgages: When it comes to shopping for mortgages, we've seen unusually high activity in the mortgage market throughout the pandemic following a brief initial dip. Inquiries have exceeded their usual, seasonally adjusted volume by 10 to 30%, reflecting low interest rates and a stronger housing market.
  • Credit cards: Consumers appeared to be the least willing to put another piece of plastic into their wallets. It took a full year — from March 2020 until March 2021 — for revolving credit card inquiries to recover back to their usual levels.
  • Car loans: Consumers with excellent credit or super prime scores surprisingly are not shopping for car loans at pre-pandemic levels. But the report noted that there could be a drop in demand for credit among this group of consumers, which may include workers who are able to work from home may not want to buy a new car if they're not commuting. (The report didn't note that a lack of cars and trucks may be coming into play or how the semiconductor squeeze cut into inventories and sales. But that, too, could be an issue.)

Overall, the consumer's willingness to take out an auto loan returned back to pre-pandemic levels by January 2021, according to data reviewed by the federal agency, which was established after the 2008 financial crisis.

Jonathan Smoke, chief economist for Cox Automotive, said credit conditions have been favorable all spring and summer, supporting strong demand for car and truck sales. Credit to buy a car is easier to get than it was a year ago, he said, shifting back to where it was before the pandemic started.

Not surprisingly, consumers are more willing to borrow if they're feeling more secure about their jobs outlook and their finances.

Total consumer credit shot up 10% in May, according to Federal Reserve Consumer Credit Report. That's the biggest increase in five years.

Consumers, no doubt, found themselves on a firmer financial footing after three rounds of stimulus checks. Some of that extra cash clearly deserves some credit for the rebound in borrowing.

Susan Tompor is the personal finance columnist for the Detroit Free Press.