Eztec Cites High Interest Rates Impact on Buyer Purchasing Power

Eztec CEO Silvio Ernesto Zarzur stated that the developer's customer base is facing growing difficulties due to high interest rates. The rising cost of mortgage credit is compromising the ability of clients to purchase housing units offered by the company.

During a conference call on third-quarter results, management highlighted that banks have recently increased financing rates. The current cost of mortgage credit at several institutions now starts at 15% per year plus the Reference Rate (TR).

Zarzur explained that the company's client profile is not concentrated in the high-income bracket with investments tied to the CDI, nor in the Minha Casa, Minha Vida program. This segment of the market is the most sensitive to changes in bank financing conditions.

As a result of this scenario, Eztec's sales velocity fell from 16.4% to 13% over the past year. The company expects to end the year with a launch volume at the lower end of its target range, which was set between 2.5 billion and 3.5 billion reais.

The developer's inventory reached 3.5 billion reais at the end of the third quarter, representing a 31% increase over twelve months. Of this total, 1.1 billion reais refers to units already completed and ready for move-in.