NASSAU, BAHAMAS- Domestic mortgage disbursements for new construction and repairs contracted 23.4 per cent to 30.3 million dollars in the first quarter compared to the same period in the previous year, as commercial lending plunged 77.4 per cent to 3.6 million dollars after a six-fold increase in the prior year.
The Central Bank of The Bahamas, in its Quarterly Economic Review for March 2026, said construction activity during the first quarter remained supported by new and ongoing varied-scale foreign investment projects. However, bank-financed domestic private sector activity remained subdued during the review period.
In domestic financing developments, total mortgage disbursements for new construction and repairs—as reported by banks, insurance companies and the Bahamas Mortgage Corporation—fell 23.4 per cent, or 9.2 million dollars, to 30.3 million dollars, reversing the 39.7 per cent growth recorded in the previous year.
This decline was driven primarily by commercial lending, which plunged 77.4 per cent, or 12.4 million dollars, to 3.6 million dollars, following a six-fold increase in the prior year.
In contrast, residential disbursements grew by 13.4 per cent, or 3.2 million dollars, to 26.6 million dollars, reversing a 9.5 per cent decline in the preceding year.
Total mortgage commitments for new buildings and repairs—a forward-looking indicator of domestic activity—fell to 41 transactions, compared to the same period in 2025. However, the value of commitments increased by 35.4 per cent to 23.2 million dollars.
All commitments during the period were residential, compared to the prior year when there were two commercial commitments valued at 0.4 million dollars. No commercial commitments were recorded in the latest period.
In interest rate movements, the average financing rate for residential mortgages declined by 20 basis points to 5.8 per cent, while the average interest rate on commercial disbursements fell by 40 basis points to 6.2 per cent.
