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
Date Written: December 15, 2020
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: Suggested Citation