Argentina's mortgage rates fall as banks reverse hikes amid economic optimism

Argentina's mortgage market is showing signs of a revival as 12 banks have begun lowering interest rates on home loans. This move reverses a trend of significant rate increases seen in the latter half of 2025, making it easier for families to access housing finance and boosting their purchasing power.

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The banks are not competing with each other; they are reversing last year's increase.

Economist Federico González Rouco suggests the shift is not merely about inter-bank competition but a reversal of last year's rate hikes. He points to improved economic expectations following the October elections as a catalyst that has now trickled down to the mortgage market. "The banks are not competing with each other; they are reversing last year's increase," he stated.

Several institutions have already implemented rate cuts. Banco Hipotecario lowered its rate from 10.5% to 9.5%, while banks in the Grupo Petersen reduced theirs from 12% to 8.9%. Banco de Corrientes saw a decrease from 12% to 9.9%, and Banco Provincia cut its rate from 39.2% to 31.2%. Other banks like ICBC, BBVA, and Santander have also introduced preferential or reduced rates.

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Rates are falling because economic conditions are improving.

Diego Gatto, manager of Housing Loans at Banco Hipotecario, attributes the rate reductions to improving macroeconomic conditions. "Rates are falling because economic conditions are improving," he explained. He also highlighted securitization of portfolios as a key factor, enabling banks to sell off loan portfolios and free up capital to meet growing credit demand.

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The decision to reduce loan interest is directly linked to the evolution of macroeconomic variables.