Mortgage Lending in January-May 2021: the Upside Risk of the Real Estate Market
Monitoring of Russia's Economic Outlook. Trends and Challenges of Socio-Economic Development. Moscow. IEP. 2021. No. 12, pp. 16-18
3 Pages Posted: 11 Aug 2021
Date Written: July 14, 2021
At the beginning of this year, the growth rate of residential mortgage lending (RML) corresponded to the average level of 2020. The market situation is largely influenced by the reduction in interest rates caused by the implementation of state preferential mortgage programs. The rise in prices in the primary and secondary housing markets amid more expensive bank funding and an increase in construction costs create potential upside risks in the real estate market and results in a mortgage bubble, which forces the government and the Central Bank of the Russian Federation to take measures to cool the market.
Keywords: Russian economy, mortgage market
JEL Classification: G21
Suggested Citation: Suggested Citation