Commercial banks were the stars of the Mexican mortgage market through the end of February, though lending from the public sector is expected to pick up soon, according to a report from Spanish bank BBVA.
Private sector banks have increased their mortgage lending by 21.7% year-on-year through the end of February, to 8.39bn pesos (US$724mn), the report said.
In contrast, public sector lenders Infonavit and Fovissste - which account for more than 70% of the total mortgage market - saw their combined mortgage portfolio decline by 25% during the same period, to 13.8bn pesos.
The total mortgage lending portfolio declined by 12.5% year-on-year through the end of February, to 22.45bn pesos.
Still, BBVA's report noted that public sector lending activity "has not been interrupted," but rather slowed by changes in certain lending programs.
BBVA predicts that the public sector portfolio will finish the first quarter with 17% year-on-year growth and that the sector as a whole will finish the year with total annual growth of around 15%.