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Maria Rita Serrano, president of Caixa Econômica Federal, expressed deep concern about real estate financing when revealing the institution’s quarterly results. She highlighted that the decline in savings, driven by high interest rates, is complicating the housing finance scenario. CAIXA has felt the impact, seeing a loss of approximately R$50 billion in savings funds in recent times.
Impact of the decrease in the amount of savings
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For real estate lending, the accumulation of savings funds is crucial. However, as interest rates rise, Brazilians are finding savings to be a less attractive investment. This has resulted in reduced inflows, making it challenging for CAIXA to establish more affordable interest rates for home financing.
Marcos Brasiliano, CAIXA’s vice president of finance, mentioned that the bank is seeking balance, aiming to release a significant volume of loans at the most competitive rates. However, savings deposits need to recover for there to be a real prospect of lower interest rates. It is worth noting that CAIXA is reluctant to raise rates, always being the last to increase them and the first to lower them.
Previously expressed concerns
Maria Rita Serrano, CAIXA’s leader, had already signaled her concern about this issue in May. During the announcement of a campaign focused on savings, she emphasized that high interest rates have discouraged savings, making property investment more expensive. This happens because CAIXA needs to seek alternative and more costly financing to maintain the housing supply.
In May, withdrawals from savings accounts exceeded deposits by R$11.747 billion, representing the largest deficit for the period since 1995. The outflow of savings funds can be attributed to rising debts and the search for more profitable investments.
Impact on housing financing
The decrease in the amount of savings directly affects housing financing. With reduced funds, CAIXA needs to explore more expensive sources of financing, increasing housing costs. The persistent rise in interest rates also worsens this situation.
CAIXA is looking for ways to rejuvenate savings, making them more appealing. However, as long as interest rates remain high, it will be challenging to offer more attractive housing financing.
Measures adopted by CAIXA
CAIXA is determined to find strategies that mitigate the decline in savings deposits, ensuring that real estate credit remains viable. The bank constantly seeks a balance between attractive loans and financial sustainability.
It is essential to mention that CAIXA is hesitant to raise interest rates, reflecting its dedication to providing advantageous conditions for housing financing. The bank keeps a close eye on interest rate trends and, should there be a substantial decrease, this could indicate a reduction in housing loan rates.
Commitment to access to housing credit at Caixa
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Home financing is under pressure due to declining savings and high interest rates. CAIXA is aware and proactive, seeking solutions to overcome the challenge and ensure that housing credit remains accessible. With high interest rates, the bank faces obstacles in providing more favorable terms. However, CAIXA remains focused, monitoring the economy and acting as necessary.
