A record number of mortgage loans were issued in Russia in January

MOSCOW, Feb 9 – RIA Novosti. The mortgage market set a record for loans issued in January compared to the same periods in previous years, RBC writes, citing an estimate from Dom.RF and Frank RG.

In January of this year, 96,000 mortgage loans were approved for over 265 billion rubles. In 2020, this figure was 78 thousand (189 billion rubles).

According to RBC's calculations, the issuance of loans increased by 19 percent in quantitative terms and by 29 percent in monetary terms. At the same time, as explained by the head of the analytical center “Dom.RF” Mikhail Goldberg, the result for January this year is lower than for December 2020 due to the long holidays. According to him, the rates are now lower than a year ago, and there are programs with state participation in the market of new buildings. The expert cited as an example a preferential mortgage for new buildings at 6.5 percent per annum.

The publication clarified that last year was a record for the market: loans were issued for 4.3 trillion rubles. Also last year, the key rate of the Central Bank also decreased – from 6.25 to 4.25 percent.

“The high volumes of loans are largely due to the demand for preferential mortgages at 6.5 percent or less: 345.6 thousand loans worth more than a trillion rubles were issued on it in 2020,” explains RBC.

Last spring, the government launched a program to subsidize mortgage interest rates up to 6.5 percent. It was in effect until November 1 of last year, but later it was extended until July 1 of this year.

The head of the financial stability department of the Central Bank, Elizaveta Danilova, said that the Bank of Russia is in favor of the gradual curtailment of the mortgage program at 6.5 percent. However, according to her, everything should be left to the regions with a difficult situation in the housing market. Presidential press secretary Dmitry Peskov said that the issue of extending the preferential mortgage program is now being discussed by experts and the government.

Author: wedocount

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