Encouraging Outlook for Mexico’s Mortgage Credit Market in 2023

Mexico City – In a recent interview with Fernando Soto, founder of “Tu Hipoteca Fácil,” a encouraging outlook for the mortgage credit market in Mexico during the last quarter of 2023. Expectations suggest that interest rates could see significant improvements, providing exceptional opportunities for homebuyers and those seeking real estate financing.

The conversation focused on several key points that point to a solid and accessible mortgage credit market in the country:

Persistence of Banking in the Market

Despite lower growth in the real estate sector compared to Mexico’s ever-changing demographics, Banks continue to provide mortgage loans significantly. As of June 2023, more than 132 billion pesos in mortgage loans had been extended, indicating a continued commitment to housing financing.

Maintaining Low Interest Rates

Despite The reference rate of the Bank of Mexico is at historically low levels, interest rates on mortgage loans have also remained low. This has allowed more people to access credit and strengthen their assets through the acquisition of homes.

Rate reduction outlook

Fernando Soto suggests that the Bank of Mexico could further reduce its reference rate, which could lead to a marginal decrease in mortgage interest rates. Although drastic reductions are not expected, this measure is expected to keep the mortgage loan tool available to those who want to buy, remodel or invest in real estate.

Positive impact on the Economy

Investing in housing not only benefits home buyers, but also has a positive effect on various industries and the economy as a whole. The stability of the mortgage credit market suggests a promising 2024, as long as public policies continue to encourage the formation of wealth through housing.

Call for clarity in Public Policies

It is expected that the government and housing authorities convey a clear vision of how they plan to revive housing construction and support this crucial industry. Transparency in these processes is essential to the continued success of the mortgage credit market.

“I hope that, by the end of 2023, Banco de México will begin to reduce its reference rate. Although we cannot expect large reductions due to the lack of significant increases in rates, we could see an improvement in mortgage rates,” noted Fernando Soto for el Heraldo de México.

“This would keep the mortgage credit tool accessible for people to buy their houses, apartments, build, remodel and take advantage of the capital invested through the loans.”

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