Mortgage Market, Character and Trends

In Brazil today, there is a large misbalance between the demand for and supply of affordable housing. The crucial factors influencing the size of this misbalance are income, relative prices, and household tastes and needs, or simply preferences. It has long been thought that there is a role for the Brazilian government in closing this demand—supply misbalance, given that the government is concerned with income distribution, and given that housing policies are a means (albeit an inefficient and inequitable means sometimes) to a fairer distribution of income. The remainder of this article will attempt to describe the government programmes used in Brazil to help increase the flow of mortgage credit into the housing sector.