The Central Bank of the Russian Federation is confident of the need to gradually raise concessional mortgage interest rates to market levels in order to reduce the difference in real estate prices in the primary and secondary housing markets. This is evidenced by the preparedness of the regulator. review Financial stability for the second and third quarters of 2023.
As stated in the report, the difference between new and old housing prices resulted from the failure of construction companies to quickly increase the supply of flats and houses. In particular, we are talking about the unpreparedness of companies to respond in a timely manner to the launch of mass mortgage programs.
As a result, the difference in housing prices, according to the Central Bank of the Russian Federation, began to reflect the difference in mortgage rates for secondary real estate and only housing under construction. It is the latter that most often enters into lending programs on preferential terms.
“To reduce the price difference <...> The document underlines the need to gradually raise the rates of preferential mortgage programs to market level and abandon the broad form of action in favor of those targeted.
At the same time, the regulator announced that concessional loan programs were performing well. According to the review’s authors, banks can use appropriate financial products to support apartment demand in the short term amid the crisis.
Previously American newspaper Politico accepted Governor of the Central Bank of the Russian Federation Elvira Nabiullina is considered the main “destroyer” of 2023.
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