Are you thinking of buying a house? This is what you need to understand about mortgage credits.
According to figures from the Unique Housing Registry (RUV), in January of this year there was a 37% growth in the number of registered homes in relation to the same period in 2022. Similarly, an increase of 20% was observed between the end of last year and the beginning of 2023.
In Mexico there is a sustained increase in the purchase of housing. After a few years in which, due to the pandemic, the real estate market was contained, it currently has significant dynamism that has seen several peaks in recent months; For example, in October 2022 and now since the beginning of 2023 there is more dynamism. To a large extent, this is due to the fact that mortgage rates are competitive for financing home purchases.
The relationship between interest rates and mortgages is a crucial factor to consider when deciding to buy a home. As interest rates fluctuate, the cost of credit changes, which affects the amount of money that must be paid on a mortgage over the long term. When rates are low it becomes easier for people to pay off their mortgages.
Who buys a house and where?
Data from the real estate portal Propiedades.com indicates that among the population, particularly millennials between the ages of 25 and 34, there is a growing interest in acquiring their own home. This sector represented 23.2% of the visits to the platform; It is followed by users from 35 to 44 years old (20.3%) and from 45 to 54 years old (18.7%).
In fact, The states of Nuevo León, Jalisco, the State of Mexico and Mexico City are the entities that register the highest acquisition of housing through mortgages since last year. It is expected that this year they will remain as leaders in the ranking.
On the other hand, high interest rates make it more expensive to borrow money, which can discourage people from buying homes. High interest rates can also lead to increased demand for rental properties, as people may prefer to rent rather than buy a home that comes with a higher monthly payment.
However, rental prices have also had an impact due to factors such as inflation. Data from Propiedades.com indicates that between 2021 and 2022 the average price per square meter for house rentals increased 16%, and 9% for apartments. While the sale price increased by an average of 10%, both for a house and for an apartment, in the same period.
Mortgage loans: to buy or not to buy
When it comes to buying a home, it’s essential to keep an eye on interest rates to determine the best time to make a purchase. However, it is a variable indicator that, broadly speaking, allows us to assess whether a loan is cheap or not, but other indicators such as CAT, term, disbursement, etc. must also be considered.
On the other hand, the average home will tend to consolidate driven by new buyers of properties that have a better mortgage profile.
leonardo gonzalez PhD in applied economics, with experience in economic consultancy, teaching and research; For 6 years he has been working in the Real estate analyst position in the real estate portal Propiedades.com.
