In a recent press briefing, the deputy governor of the Central Bank of Russia discussed ongoing talks about broadening preferential mortgages to the secondary housing market. The conversation centered on how a permanent program might be extended beyond new construction to include existing homes, with a focus on more precisely targeted family mortgage options that could operate over a lengthy horizon. The remarks underscored the central bank’s belief that the idea is worthy of careful examination as part of a broader housing finance strategy.
The deputy governor highlighted that preferential loans for new builds currently have a notable influence on the initial market segment, where construction costs and home prices respond to policy incentives. In this context, expanding subsidized mortgages to the secondary market could influence prices more strongly than it improves overall affordability for buyers, a dynamic that warrants close monitoring and measured policymakers. The central bank’s analysis emphasizes that any expansion must balance potential benefits for households against the risk of price distortions in the housing market.
Earlier reporting indicated a set of moves under consideration as of May, including adjustments to the risk-rate surcharges applied to mortgage loans for purchasing new apartments, a possible uptick in long-term government securities yields toward 11%, and a contemplation of extending the preferential mortgage program to transactions in the secondary market. Market participants had already noted price increases for mortgages issued by major lenders during May, reflecting shifting monetary conditions and policy expectations. Observers emphasize that policy changes of this kind can ripple through the lending environment, influencing lending costs, credit risk assessments, and the pace of mortgage activity across both primary and secondary housing sectors.