Mortgage Lending in January-September 2020

Monitoring of Russia's Economic Outlook. Trends and Challenges of Scoio-Economic Development. Moscow. IEP. 2020. No. 20, pp. 11-13

3 Pages Posted: 24 Feb 2021

See all articles by Sergey Zubov

Sergey Zubov

Russian Academy of National Economy and Public Administration under the President of the Russian Federation (RANEPA)

Date Written: December 15, 2020

Abstract

On the back of the lending market interest rate cuts and implementation of the subsidized mortgage program (mortgage loans at the interest rate of 6.5% per annum for home buying on the primary housing market), real-estate market demand picked up. In Q1-Q3, 2020, banks increased substantially mortgage lending volumes, having surpassed the high outturns seen in 2018. The downside of the lending-based demand stimulation was the appreciation of prices both on the primary and secondary housing markets and high household debt load. This makes the money authorities point to the need of wrapping up the subsidized mortgage government program in the near future.

Keywords: Russian Economy, Corporate Lending, Housing Market, Mortgage

JEL Classification: G21, G24, G28

Suggested Citation

Zubov, Sergey, Mortgage Lending in January-September 2020 (December 15, 2020). Monitoring of Russia's Economic Outlook. Trends and Challenges of Scoio-Economic Development. Moscow. IEP. 2020. No. 20, pp. 11-13, Available at SSRN: https://ssrn.com/abstract=3749422 or http://dx.doi.org/10.2139/ssrn.3749422

Sergey Zubov (Contact Author)

Russian Academy of National Economy and Public Administration under the President of the Russian Federation (RANEPA) ( email )

Vernadskogo Prospect 82
Sredny av. V.O., 57/43
Moscow, St. Petersburg 119571
Russia

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