24% of Mortgage Loans are Backed by Infonavit and Fovissste
12:11 19/09/2024 - PesoMXN.com
Between January and July of this year, commercial banks have granted 16,100 mortgage loans in collaboration with Infonavit and Fovissste. According to the Association of Banks of Mexico (ABM), these over 16,000 co-financed loans account for 24% of the total 68,000 loans issued by banks in the first seven months of the year.
Julio Carranza, president of ABM, highlighted initiatives like co-financing, which started being implemented in 2021, and the option to transfer loans between different banks, which have created a positive boost in access to housing loans while keeping interest rates below the average benchmark. "At the end of July, the average interest rate of commercial banks stood at 10.3%, a level that has remained stable since 2023, with an expectation of decline due to the potential reduction of the central bank's benchmark rate," Carranza stated. The banking leader is hopeful that a decrease in rates will benefit the flow of mortgage loans in Mexico and mentioned that banks have lent 1.6 trillion pesos, representing a nominal growth of 8.2%. Additionally, this Wednesday, the Federal Reserve (Fed) carried out its first 50 basis point rate cut. It’s anticipated that the Bank of Mexico (Banxico) will follow this trend in its next meeting.
This outlook is encouraging for those looking to purchase a home, as the combination of declining rates and co-financing programs can make accessing financing easier. It's essential for buyers to evaluate their options and consider how these changes could impact their creditworthiness and long-term investment decisions. With more accessible rates, the real estate sector could see a resurgence, benefiting both borrowers and the economy overall.
