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Mexico's leading mortgage lender eases pace in H1

Wed Jun 24, 2009 5:37pm EDT

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MONTERREY, June 24 (Reuters) - Mexico's Infonavit said on Wednesday that it granted 16 percent fewer mortgages during the first half of the year, but a new program launched this month is expected to boost lending amid a recession.

The housing sector has been hurt by the financial downturn which has tightened credit flows. Finance Minister Agustin Carstens recently forecast that growth in the housing market this year will be 7.1 percent less than in 2008.

But Infonavit, Mexico's largest mortgage lender, loosened requirements for credit in June in the hope it can meet its annual goal of half a million mortgages granted.

Leading home construction companies like Homex (HOMEX.MX) and Geo (GEOB.MX), which generate the bulk of their sales from homes funded by Infonavit loans, are still expecting to increase their revenues by as much as 10 percent this year. (Reporting by Gabriela Lopez; Editing Bernard Orr)



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