Related to this, the Unidad de Fomento (UF), a key indicator for calculating other types of loans, will fall during this month, after inflation fell by 0.2% in December 2024.
Mortgage loans in Chile continue to consolidate rate declines after the highs recorded at the end of 2023, which made housing financing even more expensive.
According to data published by the Central Bank, from January 1 to 7, the average rates on mortgage loans in UF reached 4.29%.
With this, the cost of financing for housing reaches its lowest level since September 15, 2023 (4.30%), while in the previous week, it was 4.21%. By the end of November of that year, mortgage rates reached an average of 5.31%.
Lower mortgage rates add to the fall of the UF
Related to this; the Unidad de Fomento (UF), a key indicator for calculating other types of credits, will fall during this month, after the Consumer Price Index (CPI) fell by 0.2% in December 2024, leaving an annual inflation of 4.5% in the year.
With this, the UF will fall by about $76.87 to $38,359.64.
Regarding the outlook for the real estate market in 2025, real estate consultancy Transa states that interest rates, inflation and the Gross Domestic Product (GDP) are the key aspects that will continue to impact the sector.
Although access to housing loans has been restricted by various factors, the deputy manager of Transsa's research unit, Esteban Jara, said that if economic and credit conditions improve (banks continue to tighten requirements), it is possible that there will be a recovery in the total number of sales.
This is especially the case in communes such as Santiago Centro, Ñuñoa and Las Condes, where there is high demand. In La Cisterna and La Florida, increases are also projected for the coming years, “while in older communes with more consolidated markets, growth could be moderate.”
“Factors such as inflation, economic recovery and government policies must be closely monitored as they play a crucial role in the evolution of the market. Adapting to these factors will allow buyers, sellers and real estate players to make informed decisions and take advantage of the opportunities that may arise in 2025,” Jara concluded.
