The government of Andrés Manuel López Obrador will end the year of lowest demand for mortgage loans, due to high interest rates and the increase in housing prices. The Federal Mortgage Society (SHF) estimates that this year banks and organizations such as Infonavit and Fovissste will place 735,160 loans for the acquisition and improvement of housing, which represents a drop of 21 percent compared to what was registered last year.
It is the lowest since at least 2012, according to data from the federal agency, and represents the first drop for the placement of mortgage loans after two years of increases.
According to the Housing Financing Demand 2024 report, prepared each year by the agency, this reduction in housing financing in Mexico is due to factors such as high interest rates, inflation, the increase in housing prices and economic uncertainty.
“The decrease in demand for acquisition and improvement actions is mainly attributed to the environment of economic uncertainty that the country is going through, where inflation in 2023 closed at 4.7 percent, the average mortgage interest rate stood at 11.4 percent and housing prices grew 10.9 percent.”
SHF data indicates that prior to this administration, between 2012 and 2015, loans for the purchase or improvement of housing remained above one million each year, and in 2019 they were below this figure for the first time.
Alejandro Kuri, director of the Institute of Property Administrators (IAI), considered that the main factor behind this phenomenon of decreased housing credit is the increase in interest rates. Derived from this, he said, is that credit requests did not grow to levels prior to those of the six-year term, above one million a year.
The specialist pointed out that the reason why in the last six-year period more than one million loans were given per year is because there was a kind of bubble where rates were very low but artificially, which promoted the granting of financing.
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“Many people stopped their purchasing decisions until the elections were over and they knew what was going to happen in the country. “That impacted the granting of these credits,” he commented.
Infonavit will have a demand for 429,730 credits, which will mean a participation of 58.5 percent of the total, while the bank would be the second actor in the placement of credits with 21.3 percent of the total.
2024-06-17 11:00:00
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