Caixa rules out an immediate drop in mortgage rates

Why the Selic alone is not enough to lower credit costs

The mechanism behind this is economic and relatively simple: the Selic is an important reference, but it is not the only component of mortgage pricing. In long-term loans, the bank has to look at funding costs, default risk, capital requirements, the much longer term of the operation and the return needed to sustain that portfolio. In other words, the final rate reflects a broader equation than the current monetary policy. Even if the Selic falls, the rest of that calculation may not decline at the same pace, or may remain under pressure. That is why Caixa’s assessment makes sense as a diagnosis: it suggests there is still not enough room in the structural conditions of credit to justify additional cuts in home-loan rates.

The practical effect shows up in installments and access

Mortgage rates shape the market’s pace

In Rio, the reading also calls for caution

Source consulted: Papo Imobiliário

Fonte consultada: Papo Imobiliário