Mortgage Companies in Mexico Project 10% Increase in Loan Placement for 2024

Next year, mortgage companies in Mexico will place more than 617,733 million pesos in loans from Infonavit, commercial banks, brokers and Fovissste for the purchase of housing, improvements, remodeling and land acquisition.

Although the rise in housing prices, the lack of property supply and increases in interest rates slowed down the placement of mortgage loans this year, the main players in the sector estimate that in 2024 there will be a 10 percent increase. annual placement amount.

Juan Kasuga, president of the Association of Mortgage Brokers (ABH) and CEO of Creditaria, explained that mortgage banking contributed between 290 thousand and 300 billion pesos in placement this 2023.

“In 2021, banking grew by over 35 percent and brokers grew a little more, around 50 percent, in 2022 the growth was more moderate,” he noted.

He added that these adjustments are due to the increase in housing prices of up to 11 percent on the national average, according to data from the Federal Mortgage Society (SHF) and the volatility of interest rates.

“The banks are quite optimistic in their figures regarding next year; if we take an average, they must be expecting an increase of between 6 and 8 percent in value of what the market will grow in 2024,” he noted.

According to the ABH, by the end of 2023 only through brokers a placement of up to 123 billion pesos is expected, 2.3 percent less than last year.

“Despite the drop that we observed in 2023 of 2.3 percent in the amount placed, our expectation for 2024 is positive because in addition to seeing a possible drop in interest rates for the following year, we will see a recovery in the sector. “added Jorge Alcántara, director of the ABH.

Infonavit gains ground

Infonavit will close 2023 with a 20 percent increase in credit placement, according to estimates by the general director himself, Carlos Martínez Velázquez.

Martínez Velázquez estimated that next year an economic benefit in the placement of mortgage credit of up to 250 billion pesos is expected. As of November of this year alone, the institute had placed more than 230,592 million pesos, while more than 382,000 financings were recorded in the number of loans.

The official stated that the flexibility in Infonavit’s housing credit schemes has allowed quote waiting times to be reduced from two years to six months, requirements for home improvement options were eliminated and credit amounts were increased up to 53 percent on average.

“All this translates into 19 percent more credit granting than last year and 30 percent more resources. In this administration we have so far granted 2.3 million credits in the different modalities offered by Infonavit,” he assured.

For its part, Fovissste granted 32,236 loans this year with an economic impact of 30,190 million pesos. With the changes to the Issste Law, the fund could increase its placement by up to 45 percent in 2024.

“We think that with a budget of 43,733 million pesos, we can serve 38,225 beneficiaries,” commented César Buenrostro, executive member of Fovissste.

Enrique Margain, coordinator of the Mortgage Committee of the Association of Banks of Mexico (ABM), pointed out that the 48 percent increase in housing costs in the last four years and the increases in interest rates will impact people obtain a lower line of credit or higher monthly payment.

Despite this, he is confident that the mortgage sector will remain stable next year.

“In some way, if there are improvements in the financial conditions of mortgage loans, that will help, that will allow the numbers to be maintained,” he concluded.

2023-12-21 09:50:44
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