According to the bank, the sustained growth of this portfolio is explained by interest rates that have remained below double-digit levels since May 2020.

According to the latest BBVA Research report, during the month of July 2021, the annual nominal growth of the balance of the current loan portfolio granted by commercial banks to housing was 9.1%; slightly higher than the one reflected in the previous month of 8.9%.

Check here: Low interest rates favor residential demand

The bank highlighted that this portfolio has managed to maintain its dynamism, registering a real growth rate of 3.1%; which is slightly higher than that registered in June (2.9%), but below that observed in July 2020, which reflected 5.2%.

Similarly, at a monthly rate, the good performance of the home loan portfolio has been sustained; since it presented growth in nominal and real terms in the last four months.

In addition, delinquency remains limited, although the past due portfolio of this segment has increased, with a delinquency rate (IMOR) of 3.4% in July 2021; slightly lower than the 3.5% observed the previous month, but still above that observed in July 2020 with 3.1%.

Of interest: How can a real estate broker help you?

BBVA indicated that the growth rate of this portfolio has moderated throughout 2021; going from a real growth of 5.3% in December 2020 to one of 3.1% in July 2021.

However, in recent months, this growth has been sustained, due to an environment of interest rates that have remained below double-digit levels since May 2020.

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Original note