Chileans interested in acquiring a mortgage credit They have reason to celebrate, as interest rates hit their lowest level in more than a year. According to figures from the Central Bank, during the first week of November 2024, rates averaged 4.41%, marking a significant decline compared to the values over 5% observed at the end of 2023 and the beginning of this year.
The decrease in mortgage rates provides a considerable advantage for those seeking to access financing. This trend, described as a “san Juan summer” by industry experts, has driven discounts of up to 20% on properties available for immediate delivery. According to Cristián Lecaros, CEO of Lecaros Group, this is the ideal time to take advantage of the conditions of the real estate market.
However, although these rates represent a relief, they are still far from the historical low of 1.99% recorded in October and November 2019. Despite this, the current outlook is encouraging compared to recent years, allowing more people to get closer to the dream of own house under more favorable financial conditions.
On the other hand, not all the news is positive. The Development Unit (UF), a key indicator in the calculation of mortgage loanswill experience a significant increase in the coming weeks. By December 9, the UF will reach $38,362.26, after a daily rise of $12.66. This increase is linked to inflation, which in October showed its highest monthly variation in two years, driven mainly by the increase in electricity bills.
The UF, created in the 1960s to mitigate the impact of inflation on financial contracts, continues to be an essential reference in the Chilean economic system. However, its constant readjustment, linked to the Consumer Price Index (CPI), poses challenges for those planning finance their long-term projects.
