NASSAU, BAHAMAS — Mortgage disbursements for new construction and repairs during the second quarter of 2022 declined by just over 22 percent, according to the Central Bank.
This represets a reversal from the reported 66.6 percent boost reported last year.
The regulator, in its recently-released Economic Review for the Second Quarter of 2022, noted that construction sector activity during the period April to June remained supported by varied-scale foreign investment projects.
The quarterly review provided an examination of the domestic economic performance, as well as sectoral developments.
“In domestic financing developments, total mortgage disbursements for new construction and repairs – as reported by banks, insurance companies, and the Bahamas Mortgage Corporation – declined by 22.1 percent ($5.4 million) to $19.1 million,” the Central Bank reported.
“Underlying this outturn, residential mortgage disbursements reduced by 25.5 percent ($6.2 million) to $18.0 million, a switch from a 68.6 percent increase a year earlier. Conversely, the commercial segment increased to $1.1 million, exceeding the $0.3 million uptick in the previous year.”
The regulator also noted that total mortgage commitments for new buildings and repairs – a forward-looking indicator of domestic activity – grew relative to the same period last year from 76 to 82.
“Similarly, the associated value rose by $9.6 million (67.6 percent) to $23.8 million. Disaggregated by loan category, the number of residential undisbursed approvals increased by 3 to 78, with the corresponding value higher by $8.8 million (63.5 percent) at $22.6 million.
“Further, commercial commitments firmed by 3 to 4, while the relevant value advanced to $1.1 million from just $0.3 million same period last year,” the Central Bank said.
With regard to interest rates, the average loan financing for commercial mortgages narrowed by 2.0 percentage points to 5.72 percent, while the average rate for residential mortgages fell by 54 basis points to 5.91 percent.
