Mortgage interest rates reach almost 11%, worrying consumers.
Analysts have stated that it will be more difficult for Brazilians to obtain financing for real estate in 2023.
247 - Private banks have increased mortgage rates in recent weeks. Figures released by the Central Bank (BC) showed that the rate hit an average of 10,74% per year in January.
“We will have a more difficult financing scenario in 2023,” said the president of the Real Estate Industry Commission of the Brazilian Chamber of the Construction Industry (CBIC), Celso Petrucci, according to reports published this Monday (13) by newspaper The State of S.Paulo.
According to Miguel Ribeiro de Oliveira, executive director of the National Association of Executives in Finance, Administration and Accounting (Anefac), "since real estate financing is of high value, any drop of half a percentage point in the interest rate has a very large impact on the value of the installment and the total amount disbursed."
One of the reasons for the increase in mortgage interest rates is the Selic rate (basic interest rate), currently at 13,75%. This percentage has been the subject of criticism from President Luiz Inácio Lula da Silva and his allies.
According to analyst Miguel Ribeiro de Oliveira, in a mortgage of R$ 500, for example, contracted for a term of 30 years, a person can save up to 6% (or about R$ 70) at the end of the period if the mortgage interest rate falls by just one percentage point, from 10% per year to 9%. "Given such high interest rates, I recommend that consumers wait a little longer."
Selic
Selic is the abbreviation for Special System for Settlement and Custody, which is a Brazilian electronic system used by the Central Bank of Brazil to manage the country's monetary policy. The Selic system is responsible for settling financial transactions involving government securities, such as Treasury bonds and bills, as well as interbank operations.
In addition to facilitating the trading and settlement of government bonds, the Selic system is also used by the Central Bank to set the basic interest rate of the Brazilian economy, known as the Selic rate. The Selic rate is used to influence borrowing costs and inflation in Brazil and is closely watched by economists and investors.
The Selic rate is determined by the Monetary Policy Committee of the Central Bank, which meets regularly to assess economic conditions and set the interest rate accordingly. When the Central Bank raises the Selic rate, it makes loans more expensive, which can help control inflation. Conversely, when the Central Bank lowers the Selic rate, it makes loans cheaper, which can stimulate economic growth.
The Selic system and the Selic rate play a critical role in Brazil's monetary policy and financial markets and are closely monitored by investors and policymakers, both in Brazil and internationally.
(Article written with the support of artificial intelligence)