Mortgage rates in Russia are expected to fall down to 7-8%

Mortgage rates in Russia are expected to fall down to 7-8%
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In Russia, mortgage rates may drop on a mid-term horizon down to 7-8% per annum, according to Elvira Nabiullina, the head of Central Bank of Russia. 

“As inflation returns to our target, we estimate that mortgage rates in the medium term may be somewhere in the range of 7-8%”, Nabiullina said at a press conference on Friday.

Earlier, Central Bank reported that in July, the average rate on mortgage housing loans in rubles had grown in Russia for the first time since January this year — up to 9.57%. In June, the rate reached its low, amounting to 9.48%. The previous record was announced in May, amounting to 9.56%. In April, the average weighted interest rate was 9.57%, in March — 9.64%, in February — 9.75%, in January — 9.85%, in December 2017 — 9.79%.

Nabiullina has also noted that Central Bank is closely monitoring the quality of mortgage loans and does not see any risk of emerging a so-called “bubble”.

"We do not see any bubble in the mortgage market, although mortgage loans are growing fast enough — about 24-25%, this is a rapid growth rate”, the head of Central Bank stated.