Finance Minister Arkhom Termpittayapaisith has asked Government Housing Bank (GH Bank) to maintain its current mortgage interest rates this year as borrowers struggle with living costs.
He said global interest rates, including in the United States, are rising to curb soaring inflation.
The Bank of Thailand's Monetary Policy Committee decided on Wednesday to maintain the policy rate at 0.5%.
The committee also increased its inflation rate forecast for this year to 4.9% from 1.7% because of energy and food price surges attributed to supply shocks from the Russia-Ukraine war.
Mr Arkhom said the government has continued to introduce measures to alleviate the public's burden.
He pointed to signs of the property sector's recovery from the impact of the Covid-19 pandemic.
The recovery is causing higher demand for mortgage loans this year, Mr Arkhom said at a property seminar hosted by Krungthep Turakij newspaper on Thursday.
The minister said the real estate sector, which plays a key role in economic growth, accounts for 4.8% of GDP.
When combined with construction and other related sectors, such as the furniture segment, the property sector overall accounts for 10% of GDP, he said.
Mr Arkhom said house prices this year are expected to rise because of a spike in construction material costs.
He advised the property sector to adapt to the trends of digital technology, environmental friendliness, and the ageing society to foster their business.
GH Bank president Chatchai Sirilai said his institution lent 62 billion baht in the first quarter this year, which it considers a high level. The bank expects to lend more than 270 billion baht this year, he said.
