Bank of Russia reported on growth of mortgage rates

Bank of Russia reported on growth of mortgage rates
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Last month, the average mortgage rate in Russia increased for the first time since early 2018, reaching 9.57%, the Bank of Russia said in a report.

So, in the period from January to July this year, banks have issued 785,000 mortgage loans to Russian customers worth a total of 1,5 trillion rubles, almost 70% higher than in the same period last year.

Within the month of July alone, Russian banks issued 122,000 loans to their clients, which amounted to 246 billion rubles. And this means an increase of 44% and 59%, respectively, compared to the indicators of 2017. According to the analysts, the observed growth is due to the favorable conjuncture of the mortgage market in the country.

In addition, the Bank of Russia has reported a 24-percent increase in aggregate mortgage debt for the above-mentioned period. Thus, at the beginning of August, this figure amount to 5.9 trillion rubles.

As a reference, The Bank of Russia is the central bank of the country founded in the middle of the 19th century. The functions it performs include issuing currency, pursuing a state monetary policy, operating as the lender of last resort for credit institutions, setting the rules to effect settlements, making decisions on the state registration of credit institution and other functions.