The decisions of the Monetary Policy Committee (Copom) not only affect the financial market, but also have a direct impact on the lives of consumers, especially those interested in financing real estate.
The fall in the basic interest rate, known as Selic, could bring significant changes to the sector, both for those seeking credit and for those investing in real estate. Let’s explore how this drop could affect mortgage rates and what it means for the market.
The effects of the Selic drop on real estate financing rates
The reduction in the Brazilian economy’s basic interest rate has the potential to influence several aspects of the financial market, including real estate financing rates.
With the latest reduction in the Selic rate to 10.75% per year and projections indicating a downward trajectory for the coming years, the expectation arises that the interest rates charged on financing will also be impacted.
Composition of real estate funding
To understand how the fall in the Selic could affect real estate financing rates, it is important to understand the composition of the funding, that is, the source of resources for the loans.
In the case of real estate credit, funding is made up of two main factors: savings and incentivized credit securities, such as Real Estate Credit Letter (LCI), Real Estate Receivables Certificate (CRI) and Guaranteed Real Estate Letter (LIG).
The role of savings and incentivized credit securities
Savings plays a significant role in real estate financing, since part of the resources deposited in this modality is destined for housing credit. However, with the fall in the Selic rate, the profitability of savings is also affected, which could reduce its attractiveness as a source of _funding_ for banks.
On the other hand, incentivized credit securities, whose cost is often linked to the Selicmay become more affordable with a reduction in the basic interest rate.
Impact of the Selic reduction on financing rates
Although the fall in the Selic could, theoretically, reduce the cost of raising funds for banks, the direct impact on real estate financing rates is not always immediate.
This is partly due to the fact that banks consider not only the current Selic rate, but also future interest projections when determining their lending rates.
Market analysis and future expectations
Experts point out that the real estate credit market has a certain “delay” in responding to changes in the Selic rate. This means that, although rates may not immediately reflect the fall in the Selic, over time, interest rates tend to follow the trajectory of the basic interest rate.
The fall in the Selic has the potential to impact real estate financing rates, although the effect may not be immediate. Understanding the composition of funding and market expectations can help consumers make informed decisions about purchasing properties and financing.
Whatever the scenario, it is important to carefully analyze the conditions of the Marketplace and consider the most appropriate time to make investments in the real estate sector.
This material contains Exam information.
