VTB predicts a slowdown in the Russian mortgage loan market in 2024 due to tightening regulations. This was reported by TASS with reference to the speech of the head of the bank’s mortgage lending department, Sergei Babin, at the banking forum in Sochi.
According to VTB’s forecast, the volume of mortgage loans issued in 2024 will be 6.4 trillion rubles, compared to 6.9 trillion rubles in 2023. Among the factors cooling the market, Babin listed the increase in Federal Reserve profit margins to limit risks, as well as new government requirements for state programs on concessional mortgages.
Babin predicted, “All this will lead to a cooling; the market volume will be around 6.3-6.4 trillion rubles.”
At the same time, the bank expects a record amount of loans against borrower activities at the level of 6.9 trillion rubles by the end of 2022. Thus, issuances in September could reach 900 billion rubles.
Recently, the Central Bank of Russia reported About concerns about deterioration of credit conditions in the market. In particular, Elizaveta Danilova, director of the Central Bank’s financial stability department, noted that the regulator has observed a decline in standards when issuing mortgage loans. According to Danilova, due to competition, banks began to take less into account the debt burden of borrowers, which can lead to negative consequences. But he also reassured that the regulator is not observing a bubble in the mortgage industry.
Previously Russian banks wanted Raising preferred mortgage rates to market rates.