Izvestia: Mortgage issuance level recovered in August after benefits were cancelled
The level of mortgage issuance began to recover after the cancellation of preferential housing loans and other state programs in July, they write “News”.
According to the publication, compared to July, in August the volume of issued loans increased by 8 percent, to 333 billion rubles, but the number rose by only a symbolic 1 percent. A slight recovery occurred after an almost threefold decrease in the volume of housing loans issued in July – then they amounted to 292 billion rubles.
In total, over the first eight months of 2024, Russians took out mortgages worth 3.64 trillion rubles, a quarter less than in the same period in 2023. At the same time, the average loan term increased by 13 months and exceeded 21 years – Russians prefer to stretch out larger loans over a longer period.
Earlier, the head of the Central Bank of Russia Elvira Nabiullina said that predictably low inflation in the long term will allow for lower rates on market mortgages. She recalled that mortgage interest rates depend not only on the key rate, but also on the expectations of banks and borrowers regarding what inflation will be and what the key rate will be throughout the cycle while the loan is in effect.
#Mortgage #lending #levels #Russia #recovered