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Are mortgage rates going down? What are banks offering today and what's expected for the rest of the year? - Infobae
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www.infobae.com
March 13, 2025
Applications to banks and real estate agencies, as well as visits to properties, remain active, and the outlook for the future is very favorable.
By Jose Luis Cieri
Mortgage loans are expected to grow even more strongly in 2025 (Illustrative Image Infobae)
Mortgage loan applications and real estate visits remained active in February, with $270 million granted. This figure reflects an increase compared to January, when $210 million was granted, despite the fact that summer is typically a period of slower market activity for seasonal reasons.
Meanwhile, a report from First Capital Group indicates that the mortgage loan portfolio, including those adjustable by UVA (UVA-adjustable mortgages), grew 12.8% monthly, reaching a total balance of 2.3 trillion pesos.
Industry experts project that demand will continue to rise and estimate a 30% increase by 2025.
According to Guillermo Barbero of First Capital Group, mortgage financing increased 283.7% in nominal terms and 131% in real terms year-on-year over the past 12 months, consolidating its position as the fastest-growing line of credit in pesos.
Given this scenario, they emphasize that it's key to evaluate certain aspects before taking out a loan, from rates and terms to the payment-to-income ratio and the costs associated with purchasing a property.
Real estate agencies are reporting a good level of inquiries, and in 5 out of 10 cases, interested parties are seeking to purchase with mortgage financing.
Property visits are also conducted, and the majority of properties sought for purchase are valued at up to USD 120,000 within the mid-range of the real estate market.
There are also differences depending on the financial institution, the location of the home, and whether the applicant is a bank customer or not.
Mortgage interest rates stabilized at the beginning of 2025, following last year's upward trend.
Alan Daitch , CEO of Tasa Tasa, highlighted that this change responds to a more predictable macroeconomic context, driven by the reduction of the crawling peg to 1% and the moderation of inflation.
"They began offering them more competitive terms, with rates starting at 3% per year at institutions like Banco Municipal de Rosario and Banco Ciudad," he explained.
However, he warned that beyond the nominal rate, it is key to evaluate the Total Financial Cost (TFC), which includes insurance, commissions, and administrative expenses.
For the remainder of 2025, Daitch projected that demand for mortgage loans will continue to rise if economic stability consolidates. "If inflation continues to fall, we could see more affordable rates and an acceleration in lending, which would allow us to exceed 30,000 loans granted this year," he noted.
However, he warned that the real estate market is also in full recovery, with monthly increases in property values. “Waiting for a rate cut may seem like a logical strategy, but if home prices rise faster than the interest rate reduction, postponing the decision could end up being more costly,” he added.
The market is active at this time of year (Illustrative Image Infobae)
When choosing a loan, Daitch recommended analyzing the type of rate—fixed, variable, or mixed—and using simulators to estimate the actual payment over time. He also suggested comparing the Nominal Interest Rate (NIR) with the Annual Percentage Rate (APR), since the latter includes additional costs and reflects the true cost of financing. “In some cases, a loan with a lower rate can end up being more expensive if the associated costs are high,” he explained.
Federico González Rouco , an economist at the consulting firm Empiria who specializes in the real estate market, explained that the elimination of foreign exchange restrictions will facilitate the securitization and entry of local banks into the capital market, allowing them to access greater liquidity in pesos and dollars to grant loans.
"The restrictions affect banks' financing capacity. Without these restrictions, they will be able to expand their lending offerings and improve conditions for those seeking credit," he stated.
At the macroeconomic level, González Rouco maintained that the measure will boost economic growth, which will lead to improved revenues. "Generally, a growing economy translates into more jobs, more consumption, more demand, and more money in circulation."
In the real estate market, the impact will also be significant, as banks' increased financing capacity will boost demand for properties. "This will be excellent news because there will be free movement of investments and less uncertainty about the dollar," he added.
"This pace of funding shows a positive trend, and if it continues, we could approach 2018 levels," said Fernando Álvarez de Celis , executive director of the Tejido Urbano Foundation.
He emphasized that banks are more established in granting these types of loans and that demand will continue to be sustained by the need for access to housing.
February registered a slight increase compared to January, consolidating the growth trend in mortgage financing. According to Álvarez de Celis, this performance confirms the sector's recovery and anticipates a March with a greater number of loans granted. "It's a very good year for mortgage lenders, and everything indicates that the 2018 figures will be significantly higher," he concluded.
www.buysellba.com
Source:
¿Bajan las tasas de los créditos hipotecarios?: qué ofrecen hoy los bancos y qué se espera para lo que resta del año
Siguen activas las solicitudes en bancos e inmobiliarias, así como las visitas a inmuebles y las perspectivas hacia adelante son muy favorables
www.infobae.com
March 13, 2025
Applications to banks and real estate agencies, as well as visits to properties, remain active, and the outlook for the future is very favorable.
By Jose Luis Cieri
Mortgage loans are expected to grow even more strongly in 2025 (Illustrative Image Infobae)
Mortgage loan applications and real estate visits remained active in February, with $270 million granted. This figure reflects an increase compared to January, when $210 million was granted, despite the fact that summer is typically a period of slower market activity for seasonal reasons.
Meanwhile, a report from First Capital Group indicates that the mortgage loan portfolio, including those adjustable by UVA (UVA-adjustable mortgages), grew 12.8% monthly, reaching a total balance of 2.3 trillion pesos.
Industry experts project that demand will continue to rise and estimate a 30% increase by 2025.
According to Guillermo Barbero of First Capital Group, mortgage financing increased 283.7% in nominal terms and 131% in real terms year-on-year over the past 12 months, consolidating its position as the fastest-growing line of credit in pesos.
Given this scenario, they emphasize that it's key to evaluate certain aspects before taking out a loan, from rates and terms to the payment-to-income ratio and the costs associated with purchasing a property.
Real estate agencies are reporting a good level of inquiries, and in 5 out of 10 cases, interested parties are seeking to purchase with mortgage financing.
Property visits are also conducted, and the majority of properties sought for purchase are valued at up to USD 120,000 within the mid-range of the real estate market.
What are the interest rates?
When applying for a loan, experts advise analyzing the rates and associated costs. The system offers payment simulation tools on bank websites, allowing you to compare options.There are also differences depending on the financial institution, the location of the home, and whether the applicant is a bank customer or not.
Mortgage interest rates stabilized at the beginning of 2025, following last year's upward trend.
Alan Daitch , CEO of Tasa Tasa, highlighted that this change responds to a more predictable macroeconomic context, driven by the reduction of the crawling peg to 1% and the moderation of inflation.
"They began offering them more competitive terms, with rates starting at 3% per year at institutions like Banco Municipal de Rosario and Banco Ciudad," he explained.
However, he warned that beyond the nominal rate, it is key to evaluate the Total Financial Cost (TFC), which includes insurance, commissions, and administrative expenses.
For the remainder of 2025, Daitch projected that demand for mortgage loans will continue to rise if economic stability consolidates. "If inflation continues to fall, we could see more affordable rates and an acceleration in lending, which would allow us to exceed 30,000 loans granted this year," he noted.
However, he warned that the real estate market is also in full recovery, with monthly increases in property values. “Waiting for a rate cut may seem like a logical strategy, but if home prices rise faster than the interest rate reduction, postponing the decision could end up being more costly,” he added.
The market is active at this time of year (Illustrative Image Infobae)
When choosing a loan, Daitch recommended analyzing the type of rate—fixed, variable, or mixed—and using simulators to estimate the actual payment over time. He also suggested comparing the Nominal Interest Rate (NIR) with the Annual Percentage Rate (APR), since the latter includes additional costs and reflects the true cost of financing. “In some cases, a loan with a lower rate can end up being more expensive if the associated costs are high,” he explained.
Lifting the currency controls, key to credit
The possible lifting of the exchange rate restrictions will have a limited impact on mortgage lending in the short term, but will be decisive in the medium term.Federico González Rouco , an economist at the consulting firm Empiria who specializes in the real estate market, explained that the elimination of foreign exchange restrictions will facilitate the securitization and entry of local banks into the capital market, allowing them to access greater liquidity in pesos and dollars to grant loans.
"The restrictions affect banks' financing capacity. Without these restrictions, they will be able to expand their lending offerings and improve conditions for those seeking credit," he stated.
At the macroeconomic level, González Rouco maintained that the measure will boost economic growth, which will lead to improved revenues. "Generally, a growing economy translates into more jobs, more consumption, more demand, and more money in circulation."
In the real estate market, the impact will also be significant, as banks' increased financing capacity will boost demand for properties. "This will be excellent news because there will be free movement of investments and less uncertainty about the dollar," he added.
Dynamism
Between January and February, 5,500 mortgage loans were granted, half of all those granted during 2024 (11,000), reflecting strong demand and a recovery in the sector."This pace of funding shows a positive trend, and if it continues, we could approach 2018 levels," said Fernando Álvarez de Celis , executive director of the Tejido Urbano Foundation.
He emphasized that banks are more established in granting these types of loans and that demand will continue to be sustained by the need for access to housing.
February registered a slight increase compared to January, consolidating the growth trend in mortgage financing. According to Álvarez de Celis, this performance confirms the sector's recovery and anticipates a March with a greater number of loans granted. "It's a very good year for mortgage lenders, and everything indicates that the 2018 figures will be significantly higher," he concluded.
www.buysellba.com
