Mortgage demand in Russia increased sharply after the Central Bank of the Russian Federation’s key interest rate increased by 350 basis points in August to 12% annually and on the eve of its September 15 meeting. The number of loan applications for the purchase of new buildings increased by 113%, second homes by 8% and suburban real estate by 18%. About this newspaper “Izvestia” said Sales Director of the federal real estate company “Etazhi” Sergei Zaitsev.
Other real estate market participants confirm a sharp increase in demand for mortgages in Russia. People tried to get a loan on more favorable terms: after the interest rate was increased, mortgages became more expensive.
Zaitsev noted that an additional incentive for buyers in the primary market will be an increase in the minimum down payment rate under preferential programs for the purchase of housing from 15% to 20%. According to the expert, the increase in demand caused an increase in real estate prices. In August, the average cost per square meter in Russia in the primary market increased by 1.1%, and in the secondary and suburban markets by 0.5-0.7%.
15 September Central Bank raised The basic interest rate was increased by 100 basis points to 13% per annum. This means that market rates for housing loans will rise to about 15% per year, predicts Vladimir Shchekin, developer of the RDD housing cluster in New Moscow.
Associate Professor of the Department of Basic Financial Control, Analysis and Audit of the Main Control Directorate of the City of Moscow named after REU. GV Plekhanova Yulia Kovalenko the day before given Similar forecast to socialbites.ca. Moreover, according to him, the minimum rates of consumer loans will be 15.5-16 percent annually, and the return on deposits will be around 13 percent.
Previously Nabiullina said About misselling in the mortgage market.