Loading template not displaying

I am using Ember data. I have a template, loading.hbs in my /templates directory.

My route for users looks like this:

renderTemplate: function(controller, model) {
    this.render();

    this.render('settings.users.users', 
    { 
            outlet: 'users', 
            into: 'settings.users.index',
            model: this.store.find('user')
    });
} 

I am testing this by putting a long sleep in my server code. I would expect the loading template to be rendered into settings.users.users but it's not.