Bank of Jamaica Policy Rate

As Caribbean central banks follow global peers in easing monetary policy, the first tangible effects are reaching mortgage markets in January 2026. The analysis examines whether lower borrowing costs can unlock first-time buyer demand, stimulate construction and narrow the Caribbean’s widening housing affordability gap.

Caribbean mortgage markets enter 2025 with improving rate conditions as Bank of Jamaica holds at 6.0%, NHT posts record disbursements, and the Dominican Republic leads regional housing growth.

With the US Federal Reserve holding rates at 5.25-5.50 percent, Caribbean mortgage markets face severe affordability pressures as Jamaica’s NHT records surging applications and Barbados reports a 15 percent drop in new mortgage originations.

Caribbean housing affordability reaches crisis point as US Federal Reserve raises rates to 4.75% and commercial mortgage rates in Jamaica breach 12%, with the NHT remaining the critical last line of concessional finance.

As 2021 enters its final quarter, Jamaica’s property market takes stock of a year of strong demand and rising costs — and watches the Bank of Jamaica’s next policy move closely.

At mid-year, Jamaica’s property market remains buoyant: young professionals drive the apartment sector, diaspora capital flows steadily, and the NHT pipeline advances on target.