The issuance of concessional mortgage loans in Russia reached a historic high in September, despite supply constraints. About this regulator reports In the What’s Trending Newsletter in October.
Central Bank analysts state that the growth rate in housing loans increased to 3.7% monthly in August. The main driver was concessional mortgages; Its share in the total loan volume was 60%.
An increase in conventional loan rates from 15% to 20% and fears of imminent ending of subsidy programs have boosted demand, according to the regulator. Additionally, real estate is seen as a protective asset against inflation. In the secondary market, demand dynamics have lagged significantly due to reduced sensitivity to interest rates. But the Central Bank warns that the cooling in the mortgage market could intensify as it continues to grow.
At the beginning of October, the regulatory body stated that September indicators regarding the pace of mortgage loans were high, and the trend was to increase loans. continued. “However, a further increase after the most significant increase in mortgage rates on the market, an increase in the offer rates for preferential programs due to the increase in the down payment on state-backed mortgages from 15 percent to 20 percent and a decrease in subsidies to banks The Central Bank of Russia, 0 percent for such loans, He noted that a 5-point increase would contribute to a cooling of the mortgage market in the coming months.
The Central Bank had previously announced. to wait Mortgage market cooling in Russia.