Despite less activity from public sector lenders, Mexican banks were going full speed ahead in their mortgage businesses in January, and BBVA's (NYSE: BBVA) research arm expects that segment to finish the year with 15-20% growth in lending.
During January, mortgage loans granted by private sector banks were up by 32.2% compared with the year-ago month, to 3.69bn pesos (US$308mn), according to a BBVA Research report.
In contrast, lending by government mortgage lender Infonavit, which accounted for about 58% of loan activity during the month, was down by 14%, to 5.78bn pesos.
In its report, BBVA said the reduction in public sector mortgage lending was due to fewer borrowers actually taking out loans that had been approved.
BBVA's 15-20% growth projection for mortgage lending means that this loan segment would be growing significantly faster than credit as a whole in the Mexican market.