Brazil's home loans plunged in August as recession bites -group
BRASILIA, Sept 23 (Reuters) - The amount of loans for the construction and purchase of homes in Brazil fell 36 percent in August from the same month a year ago to 5.87 billion reais ($1.41 billion), industry group Abecip said on Wednesday.
In the first eight months of the year, 56.6 billion reais in loans were directed to the purchase and constructions of homes, down 22 percent from the same period in 2014, the group said.
Mortgage lenders are facing turbulence as Brazil enters its worst recession in 25 years. Lending on the segment, which grew 40 percent annually between 2007 and 2014, might stall this year and next as rising interest rates weigh on real estate purchases.
State-controlled Caixa Econômica Federal, Brazil's largest mortgage lender, said on Aug. 5 that it will further limit disbursements of home loans amid a severe reduction in outstanding savings deposits. ($1 = 4.1745 Brazilian reais) (Reporting by Alonso Soto; Editing by Alan Crosby)
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