Demand for Mortgage Loans set to Continue RisingBy Lorenzo Núñez | Wed, 07/28/2021 - 09:28
The housing sector in Mexico is perhaps the most resilient even after the uncertainty of COVID-19. The sector has reached new monthly highs in this crisis period, reported the Bank of Mexico.
Housing financings have shown great adaptability during 2020 and 2021, despite the economic contraction in Mexico derived from the pandemic. "We are in a period in which banking institutions are competing more strongly, and have reduced their interest rates, which are at historic lows," said Luis Leirado, CEO of Tasvalúo, to Inmobiliare.
Ever since the pandemic began, from February 2020 to February 2021, banks have placed around 10,300 monthly mortgages, which represents a significant growth, according to data from the Association of Banks of Mexico (ABM). In addition, in March 2021, housing credit reached a little more than a tenth of all commercial bank financing, according to the Bank of Mexico.
Luis Leirado indicated that, according to the data generated by Tasvalúo, the demand for mortgage loans will be maintained and will continue to rise in the coming months due to two fundamental factors. One, is that the interest rates for the sector are expected to continue to be very attractive and the other factor is that rates are supported by a monetary policy that promotes the placement of this type of loans from the Bank of Mexico. Furthermore, the CEO assured that the real estate sector in general is betting on a frank recovery. "The end user is increasingly immersed in a digital world, and while this is a challenge, it also represents a unique opportunity for the sector to adapt and, with it, modernize its strategies," he added.
The real estate industry seems to be more resilient than previously expected, and it is on its way to recovery. In a recent interview with MBN, Jacobo El Mann Corporate Director at Parks Desarrolladora said , “We saw some recovery in prices in 1Q21. We are starting to see numbers go up, which is a sign of better things to come. We believe that the industry will close the year on a positive note and that 2022 will bring much needed stability.”