Elvira Nabiullina, who chairs the Central Bank of the Russian Federation, said that housing price growth has cooled in several regions. The central bank notes that this slowdown mirrors softer demand in parts of the market and a shift in household borrowing behavior. The remarks came as price dynamics and mortgage activity diverged across the country, with some regions showing clearer deceleration than others. The bank’s communications stress that housing finance remains highly sensitive to credit conditions, income developments, and the risk profile of new loans. Analysts monitoring the sector say the trends point toward a stabilization path that could influence both monetary policy and financial stability measures in the near term. While price gains ease, lending activity continues to be assessed as banks adjust terms to reflect risk weights and household budgets. The central bank emphasizes that any rapid rise in mortgage borrowing would require careful risk management, given the possibility of a higher debt service burden if rates move again.
To prevent unsustainable growth in mortgage volumes, Nabiullina stressed the importance of prudent lending indicators. In practice, authorities monitor metrics such as the debt burden carried by households and the size of the down payment required for a loan. These indicators are used to gauge affordability and to calibrate risk for loans offered under market programs. The goal is to balance access to home financing with bank resilience and consumer protection. In recent months, lenders have tightened underwriting standards in response to shifting risk assessments and macroeconomic conditions. The central bank’s guidance on mortgage lending aims to dampen excess credit growth without stalling genuine demand for housing. Market participants should expect policy tools to adapt as inflation trends evolve and as funding costs for banks shift.
Earlier in the year the bank signaled that market mortgage programs would be accessible to a broad segment of Russians, provided inflation eases and borrowing costs fall. The plan is to phase in financing options that support home purchases while avoiding past excesses. Officials emphasize that any expansion of lending channels will depend on the macroeconomic picture, including price pressures and financial-system health. Observers in Canada and the United States are watching these developments because shifts in Russian mortgage policy can influence energy markets, capital flows, and the stability of emerging markets. For households, the aim is steadier access to funding with improved loan terms as the macro outlook improves.
She cautioned that cutting the policy rate too soon or too aggressively could trigger unintended effects, including mispricing and strains on financial buffers as the economy adjusts. The central bank maintains a measured stance that seeks to support growth while keeping price stability in view.
Inflation remains elevated, which limits the pace of policy easing and keeps the stance data-driven as the economy adapts to shocks and domestic conditions.
In earlier remarks, Nabiullina outlined the central bank’s core principles and the cabinet’s coordination in steering macroprudential policy and financial stability across the economy.