Mortgage credit rate starts the year close to 10%

Mortgage loan interest rates have risen from 5.93% to 9.94% annual average, an increase of 4.1%. This is the type of credit that has risen the most in percentage terms, since the increase exceeds 67%, according to Jorge Carrillo Acosta, a professor at Pacífico Business School.

As of January 30, the Average rate in the main banks and in national currency it reaches 9.97%, according to the report of the Superintendency of Banking and Insurance (SBS).

“The mortgage loan rate is exceeding 9.9% per year on average in banks, and a year and a half ago it was less than 6%, we are talking about a growth of more than 50% in the rate”, explains the financial expert.

The facts

There are two factors that are influencing this rebound. On the one hand, there is the sustained increase in the reference rate of the Central Reserve Bank (BCRP), which it carries out as part of its monetary policy to combat inflation, according to the Peruvian Chamber of Construction (Capeco).

“As long as this inflation is not controlled and governments have the need to continue maintaining high rates, accessing credit to fund financial institutions will be expensive,” he explains. Guido ValdiviaCEO of Capeco.

It should be noted that the last hike made by the BCRP was on January 12, 25 points, which brought the rate to 7.75%. The following rise could be effective on February 9 next.

The second factor is related to the internal context. “To the extent that the social problem we have is not resolved, there may be an increase in the risk profile of customers because businesses are having difficulties, rates are also going to rise because there is that convulsion condition”, the executive points out.

Housing cost

As the costs of materials rise, the houses will also rise. This depends on external factors and supply, Capeco says.

The construction materials price index rose 4.8% in December, compared to the same month in 2021, according to the INEI. The union projected that from December to February prices will continue the upward trend due to road blockades in different parts of the country.

placement of credits

From December 2021 to November 2022, mortgage loans have decreased 14% with respect to the previous period, both in quantity and amount. Above all because the credits granted by financial institutions fell; on the contrary, the credit granted by Mivivienda grew, according to Capeco. It is important to note that there was an increase in the value placed with respect to the pre-pandemic year. For example, last year 41,365 housing loans were placed for a value of S/13 million 645,145, while from December 2018 to November 2019 there were 43,542 per S/12 million 753,551.

Fact

Supplies. The main materials for the construction of a house have risen in the last 12 months: cement (+16.1%), steel (+12.0%) and tile (9.7%). On the other shore, bricks fell by -4.4%. While the labour it also rose by 7.4%.

Delivery of housing bonds will decrease in 2023

The placement of social housing bonds could fall 15% this 2023 according to Capeco, which would not be the ideal scenario, since the housing market of this type has not yet been covered and the gap is accentuated in new buildings.

In 2022 they were placed 48,351 bonds for a total value of S/1,490 million.

“Good news regarding bond resources: At this moment we have secured resources for 41,000 homes, 7,000 would be missing to reach 48,000 bonds that were disbursed the previous year,” said Valdivia.

What is missing are almost 6,000 bonds aimed at the new housing segment, since for the other programs the figures are similar.

Panorama of mortgage loans