Bank mortgage cost averages 10.38%: Banxico

Interest rates on mortgage loans offered by banks, after a period of slight upward adjustment, have stabilized

MÉXICO, (June 10, 2021)I.- According to information from Banco de México (Banxico), the Mortgage Credit Cost Indicator was 10.38% at the end of April, maintaining that level for the second consecutive month.

Since the last quarter of 2020, the average mortgage cost rate had a moderate rebound from its historical low of 9.93% last October, responding to the conditions of the long-term funding reference rates.

This trend remained in force until the start of 2021, when in January it established a level of 10.44%; However, from then on, the cost of accessing mortgage financing has again moderated.

The information from Banxico shows that for February the average mortgage cost was 10.42% and in the following two months (March and April) it was 10.38%, just three basis points above the end of 2019 and 2020 of 10.35%. hundred.

The same source of information indicates that the mortgage cost in April was between a minimum interest rate of 8.35% to a maximum of 14.3%, but the minimum at 8.35 percent.

The moderate ups and downs that have been observed in the last six months, respond to the conditions of the long-term reference rates, such as the M10 Bond, which today stands at 6.67%, but a year ago ( first quarter of 2020) was at levels of 5.25%.

This indicator shows that despite a 1.5 percentage point rebound in just over a year, mortgage interest rates remained very stable.

Meanwhile, the bank continues to show an aggressive offer, with great competition in search of greater penetration of their respective products.

Experts in the mortgage sector agree that the mortgage supply, on the cost side, is still very attractive, but it cannot be guaranteed that it will continue to remain low due to international financial conditions.

Source: Real Estate Market